US FTC Wins Court Battle, Blocks Henkel’s Proposed $725M Acquisition of Liquid Nails

August 30, 2026

Cooley USA

Overview

On August 17, 2026, the U.S. Federal Trade Commission (FTC) successfully blocked Henkel’s proposed acquisition of PPG’s Liquid Nails business in court. The FTC argued that the merger would eliminate competition in the construction adhesives market, leading to higher prices, reduced quality, and stifled innovation. The U.S. District Court sided with the FTC, issuing a permanent injunction to completely prevent the acquisition. This ruling clearly demonstrates the FTC’s aggressive stance on antitrust enforcement.

In Depth

Key Findings

On August 17, 2026, the U.S. Federal Trade Commission (FTC) announced a court victory, successfully blocking Henkel’s planned USD 725 million acquisition of PPG’s Liquid Nails business. The U.S. District Court fully supported the FTC’s arguments, issuing a permanent injunction that found the merger would substantially lessen competition in the construction adhesives market.

Legal & Business Details

FTC’s Argument: The FTC contended that if Henkel acquired Liquid Nails, it would lead to increased market concentration and reduced competition within the construction adhesives market, particularly in the DIY and professional segments. The agency argued that consumers would likely face higher prices, fewer product choices, diminished quality, and stifled innovation.
Court’s Ruling: The U.S. District Court accepted the market analysis and evidence presented by the FTC regarding the merger’s impact on competition, concluding that the acquisition violated antitrust laws. The ruling mandated a permanent injunction to prevent the competitive harm that would have resulted from the merger’s completion.
Transaction Value: The acquisition was initially valued at USD 725 million and was intended to significantly expand Henkel’s construction adhesive portfolio.

Background & Context

In recent years, the FTC and the Department of Justice have intensified their antitrust enforcement efforts, with a notable focus on blocking mergers to protect consumer interests. The construction adhesives market has seen steady growth, supported by demand from residential construction, renovations, and infrastructure development. This market is dominated by a few key players, and further consolidation could significantly alter the competitive landscape. This ruling indicates that regulatory bodies are highly vigilant against the expansion of market power by large players.

Strategic Significance & Outlook

This court decision represents a significant setback for Henkel’s expansion strategy in the North American construction adhesives market. It is also expected to influence future M&A reviews by regulatory authorities, with major acquisitions in highly concentrated sectors likely facing stricter scrutiny. Companies planning mergers and acquisitions will need to conduct more cautious antitrust risk assessments than ever before. This is expected to ensure the maintenance of healthy market competition, thereby protecting consumers and fostering innovation.

Source: https://www.cooley.com/news/insight/2026/2026-08-21-ftc-court-win-blocks-henkels-725m-bid-for-liquid-nails

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