Henkel New Zealand has received clearance from the Commerce Commission to acquire the Earthwise brand and business.

Henkel New Zealand imports and wholesales a range of consumer goods such as hair care products, toilet cleaners, laundry detergents, fabric softeners and other household chemicals including sealants, adhesives and functional coatings. Its brands include Cold Power, Dynamo and Fab laundry detergents, Sard soap and Bref toilet cleaner.

To arrive at the decision, the regulator assessed the “potential impact” of the proposed acquisition on the “competition in the national markets” for the wholesale supply of laundry detergents, toilet cleaners and laundry pre-wash aids.

Commissioner Sue Begg said the acquisition is “unlikely to substantially lessen competition” in any New Zealand market as Henkel and Earthwise are “not close competitors”.

“We found that Henkel and Earthwise focus on different consumer preferences. Henkel is focused on products for price/quality conscious consumers, whereas Earthwise is focused on products for ‘eco-conscious’ consumers.”

She added other competitors in each relevant market could expand the volume of products they currently manufacture hence the merged entity will not lessen competition.

Earthwise was ranked one of New Zealand’s most trusted brands by Consumer in 2020.

The acquisition comprises the intellectual property in the Earthwise name, logo, bottle and formulas, goodwill and relevant business records from Earthwise Group.