P&G, Sara Lee deal may face EU probe

The U.K. competition authority is considering whether Procter & Gamble Co.'s proposed acquisition of Sara Lee Corp.'s air-care business should be referred to the European Union for investigation.

The U.K. Office of Fair Trading will base its decision on whether the deal could affect trade between the EU's 27 member states or threaten to "significantly" influence competition in the U.K., the agency said today in a statement.

P&G, based in Cincinnati, agreed in December to buy Sara Lee's Ambi Pur brand for about 320 million euros ($435 million) to boost air-freshener sales in Europe, Australia, Africa and Asian countries.

"The anticipated acquisition would potentially meet the criteria for the OFT to examine the competition concerns of the deal," said an OFT spokesman who declined to be identified, citing agency policy. "Because there might be wider European impact, we're considering requesting that the EC look at the competition aspect of the deal."

Mike Cummins, a spokesman for Downers Grove-based Sara Lee, said in an e-mailed statement the company respects the European regulatory review process and will cooperate.

"This is a procedural step and we remain ready to comply with all European competition rules and we remain confident that we can do so," Cummins said.

P&G spokeswoman Jennifer Chelune said the company is working closely with the relevant regulatory authorities.

"The OFT's notice published today is part of their due process and we are pleased the review is progressing," she said in a statement.

The U.K. agency will hear comments from consumers and competitors through March 12 before deciding if the deal should be referred to the European Commission, the OFT said.