New York, September 3 — The US District Court for the Southern District of New York has blocked Henkel AG & Co. KGaA’s proposed $725 million acquisition of Liquid Nails, in a ruling that will preserve competition in the US construction adhesive market. The bottom line is that Loctite and Liquid Nails will continue to compete, and investors will note that this decision prevents a highly concentrated market from forming under federal merger guidelines.
The court’s decision followed a seven-day trial and reflects the Federal Trade Commission’s new approach of seeking permanent injunctions in federal court rather than continuing cases through separate administrative proceedings. Daniel Guarnera, director of the FTC’s Bureau of Competition, stated that the merger between Loctite and Liquid Nails would be a bad deal for Americans, and that the court’s decision would help prevent higher costs for products used in home construction and maintenance.
Background on the Deal
The FTC had sued in December 2025 to stop the deal, arguing that it would combine the two largest construction adhesive brands sold through major retailers such as Home Depot, Lowe’s, and Ace Hardware. The FTC contended that Loctite and Liquid Nails had long competed directly on price, quality, and product innovation, and that eliminating that rivalry could lead to higher prices, lower quality, and reduced innovation for materials used in home construction and repair. The $725 million price tag on the proposed acquisition is now off the table.
The US construction adhesive market is a significant segment of the building supply industry, and the court’s decision will have a direct impact on the market.
Market Impact
The decision ensures that Loctite and Liquid Nails will continue to compete in the US construction adhesive market, which is a key segment of the building supply industry. Investors will note that this decision prevents a highly concentrated market from forming, and that competition will continue to drive innovation and quality in the industry. Looking forward, the key thing to watch is how the market reacts to the court’s decision, and how Henkel AG & Co. KGaA and American Industrial Partners respond to the blocked acquisition.
The market will be closely watching the next moves of these major players in the construction adhesive industry, and investors will be looking for signs of how the decision will impact the industry as a whole.
