The U.S. federal government intervened to block Henkel’s acquisition of Pittsburgh Coatings’ core business

On December 11, 2025, the U.S. Federal Trade Commission (FTC) formally filed a lawsuit in court to block Henkel from acquiring Pittsburgh Paint Co’s core business. The FTC has made it clear that the deal will seriously harm competition in key areas of the construction supply market.

According to reports, the M&A deal worth US$725 million (about 5.11 billion yuan) will promote the business integration of the two major suppliers in the construction industry. The two parties to the transaction are Henkel Group, the world’s largest adhesive manufacturer, and Pittsburgh Coatings, which owns the well-known brand “Liquid Nails”. Henkel Group’s adhesive brands include “Loctite” and “LePage”.

According to the annual report of the Henkel Group, the company’s adhesives business generated sales of 11 billion euros in 2024, accounting for more than 50% of total revenue. According to information previously disclosed by PPG Industries when selling related businesses, Pittsburgh Paints’ sales in 2023 were approximately $2 billion.

It is worth mentioning that the transaction was not publicly disclosed to the outside world before the regulator filed a lawsuit. The FTC also alleges that the merger will eliminate fierce market competition between the two companies, leading to higher product prices, lower quality, and less innovation, thereby harming American consumers.

The transaction occurred after the change in ownership of the “Liquid Nail” brand. According to related reports, PPG Industries sold its architectural coatings business in the United States and Canada to private equity firm American Industrial Partners for $550 million last year. In December 2024, the transaction was successfully completed, and the newly independently operated company reverted to its original name “Pittsburgh Paints Company” and reactivated its original brand identity.

Daniel Guarnera, director of the FTC’s Bureau of Competition, said, “Affordable, high-quality housing is an important cornerstone of the American dream. The core purpose of antitrust law is to protect the American people from anti-competitive mergers and acquisitions. This enforcement action fully demonstrates the Federal Trade Commission’s determination to maintain the order of market competition. We will actively fulfill our statutory duties to ensure that the American people can effectively benefit from market competition. Just like the healthy competition between Loctite and Liquid Nails, this competition helps reduce the costs associated with home purchase and home improvement. ”

The FTC voted 2-0 to authorize staff to apply to the court for a permanent injunction to block the proposed acquisition. The request has now been submitted to the U.S. District Court for the Southern District of New York. Pittsburgh Paints has refuted the FTC’s allegations. A spokesperson for the company said it did not agree with the lawsuit and expected the transaction to be completed as scheduled next year. In addition, the company plans to defend the M&A transaction in court with Henkel. So far, representatives of the Henkel Group and its American industrial partners have not responded to this.