SCA, the Swedish hygiene products company, has had its purchase of Procter & Gamble’s (P&G) entire European tissue operation approved by the European Commission (EC).
The deal, worth €512m (£346), will see SCA acquire a number of well-known brands including Tempo, the market leader in paper handkerchiefs in Western Europe and Hong Kong.
In addition, SCA will also obtain exclusive European licences to use the Bounty and Charmin (pictured) brand names for kitchen roll and toilet tissue respectively. P&G’s production plants are part of the acquisition, including one in Manchester.
SCA markets the Velvet brand of toilet tissue in the UK. The company says it aims to be the undisputed leader within the tissue category in Europe.
SCA announced its intention to buy P&G’s tissue business in March 2007 but the deal was held up as it waited for approval from the EC. The approval is conditional on SCA divesting its Softis brand of handkerchiefs in Germany and Austria.
SCA chief executive Lennart Pearson says: “The acquisition will strengthen our market positions in several important markets. The decision by the EC means we can start the integration work.”