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Reckitt Formula Maker Sale Spurs Senate Call for DOJ Inquiry
(Bloomberg) -- Leading Senate Democrats are urging the Justice Department to examine and potentially move to block the possible potential sale of the infant formula making arm of Reckitt Benckiser to a private equity firm.
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Senators Elizabeth Warren of Massachusetts, Cory Booker of New Jersey along with Independent Vermont Senator Bernie Sanders and Representative Katie Porter of California wrote to the antitrust chief Jonathan Kanter Tuesday about the sale of the Enfamil manufacturer to private equity firm Clayton Dubilier & Rice.
“We encourage your division to give serious weight to the fragility of this particular market and the urgent need for strong, competing firms if Reckitt Benckiser and CDR move forward with a deal. If CDR’s history suggests that its acquisition of Enfamil would endanger the manufacturing arm’s ability to compete going forward or threaten the supply of infant formula during this period of crisis, your division should sue to block the deal immediately without considering any remedies,” the letter states.
Reckitt kicked off a sale process earlier this year for the infant nutrition unit, in what could rank as one of the British consumer goods firm’s largest-ever disposals. CD&R is one of the few buyout firms that submitted a non-binding bid for the asset, people with knowledge of the matter said in May.
Reckitt is struggling with the sale, as potential suitors have been spooked by the ongoing infant formula crisis, people with knowledge of the matter have said. Some private equity firms are waiting to see how the situation in the US develops before deciding whether to proceed with offers for the Reckitt unit, according to the people.
