DoJ Requires Divestitures In Unilever's Buy of Alberto-Culver -Bloomberg (UN, ACV)

The Department of Justice announced today that it has reached a settlement with Unilever (NYSE: UN) and Alberto-Culver Co. (NYSE: ACV) that requires them to divest two hair care brands in order to proceed with Unilever's $3.7 billion acquisition of Alberto- Culver. The department said that the transaction, as originally proposed, would substantially lessen competition in three product markets - value shampoo, value conditioner and hairspray sold in retail stores.Value shampoos and conditioners are the lowest priced shampoos and conditioners sold in retail stores, typically selling forless than two dollars a bottle.The department's Antitrust Division filed a civil antitrust lawsuit today in U.S. District Court in Washington, D.C., toblock the proposed transaction between three Unilever entities - Unilever N.V., Unilever PLC and Conopco Inc. - and Alberto-Culver. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve thecompetitive concerns alleged in the lawsuit.“Without the divestitures required by the department, consumers would have paid higher prices for value shampoo and conditioner and for hairspray sold in retail stores,” said Christine Varney, Assistant Attorney General in charge of the Department of Justice's Antitrust Division.