![]() ![]() Together, they would stitch up more than two-thirds of the market. Varta and Energizer hold the top two positions in sales of alkaline batteries there, MLex understands. This could be an indication that initial contacts with national authorities were more difficult than expected.Įnergizer declined to comment when asked whether this was the case, saying only that it is “having open and constructive discussions with and remains confident that the proposed merger will be approved.”īut when viewed through the lens of individual European countries, market shares for branded batteries could indeed raise some questions. And they even had some preliminary meetings with national authorities, MLex understands.īut then at the beginning of June, they shifted gears, announcing that they would instead file for merger review with the European Commission (see here). The parties originally intended to seek regulatory clearance with some individual European countries - Energizer specifically identified Germany, Spain and the UK in a May investors call. ![]() Nonetheless, a recent shift in their regulatory approach could be a sign that they have faced unexpected difficulties in Europe. The parties, both of which are traded on the New York Stock Exchange, said in March 2018 that they expect the transaction to close in the second half of 2018. Rayovac is particularly known for tiny zinc-air hearing-aid batteries, powered by oxidizing zinc with oxygen from the air.Īlkaline, lithium-coin and hearing-aid batteries are all classed as “portable” batteries, which means small enough to be hand-carried and used in small devices such as laptops, portable tools and toys. ![]() Middleton, Wisconsin-based Spectrum Brands’ Varta and Rayovac also make alkaline batteries, lithium coin and hearing aid batteries. It also makes lithium “coin” batteries, used in cameras and smoke detectors, and hearing-aid batteries, under its own name and the Eveready brand. Louis, Missouri, makes alkaline batteries - think AA, AAA, C, D and 9V batteries. Regulators will consider to what extent these batteries compete with brands such as Energizer and Varta.Įnergizer, headquartered in St. That being said, a significant part of the EU battery market is taken up by “private-label” batteries, sold by large retailers without specific branding. Since Energizer is itself a top player in Europe, EU regulators can be expected to take a careful look at the tie-up. While Spectrum isn’t a household name in Europe, its brands are: Varta is a market leader in alkaline batteries in Germany, and anyone who wears hearing aids will know Rayovac’s name. But in the EU, the two US-based companies’ combined market shares for branded batteries might raise some eyebrows. The deal, announced in January, sailed through the US regulatory process. American battery manufacturer Energizer’s $2 billion purchase of Spectrum Brands’ global battery and flashlights business might encounter more regulatory trouble in Europe than it did in the United States. ![]()
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