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Business
FTC v. Henkel: Lawsuit Opens to Block $725 Million Liquid Nails Acquisition
Business Desk · · 30s summary · 4 min read
The essentials
The FTC (Federal Trade Commission), the U.S. antitrust authority, opened a lawsuit on July 14, 2026, in the U.S. District Court in New York to block Henkel's acquisition of Liquid Nails, owned by Pittsburgh Paint, for $725 million. The FTC argues that the deal would eliminate the only genuine competition in the U.S. liquid adhesives market, where Loctite (Henkel) and Liquid Nails are the two dominant brands. Henkel disputes this analysis, claiming its premium-tier products and Liquid Nails' budget positioning target different market segments. The jury-waived trial is expected to last several weeks.
- The FTC seeks a court order to block Henkel's $725 million acquisition of Liquid Nails from Pittsburgh Paint.
- Loctite and Liquid Nails are the two dominant brands in the U.S. liquid adhesives market.
- Henkel contends its premium-tier products and Liquid Nails' budget positioning compete in different market segments.
- The jury-waived trial opened July 14, 2026, in New York and is expected to last several weeks.
- The FTC filed a formal complaint in December 2025 against an acquisition never officially announced by the parties.
What We Know
The FTC (Federal Trade Commission), the independent U.S. federal agency responsible for consumer protection and antitrust enforcement, opened a lawsuit on July 14, 2026, in the U.S. District Court in New York. It is seeking a court order to block Henkel's acquisition of certain assets from Pittsburgh Paint—notably the Liquid Nails brand—for $725 million. The lawsuit proceeds without a jury and is expected to last several weeks.
According to the FTC, this acquisition would substantially harm competition in the U.S. liquid adhesives market. Loctite—Henkel's adhesives and sealants brand—and Liquid Nails represent the two dominant brands in this segment. Their consolidation under a single owner would, the agency argues, eliminate genuine competition between them.
The Coca-Cola and Pepsi of the adhesives world
— Abby Lauren Dennis, FTC attorney, describing Henkel and Pittsburgh Paint at the trial opening on July 14, 2026
Henkel contests the FTC's analysis. Its attorney, David Gelfand, argues that Liquid Nails, positioned at the budget end of the market, and Loctite, positioned at the premium end, target different segments and face minimal direct competition. He also invokes the bargaining power of major home improvement retailers and low barriers to entry to refute concerns about price increases.
Context
Henkel AG & Co. KGaA is a German company whose adhesives division accounts for approximately 50% of total revenue, with the remainder split between detergents and cosmetics. It is the world's largest adhesives manufacturer and markets brands including Loctite and LePage.
Pittsburgh Paint was established in 2024 when American Industrial Partners, a U.S. private investment fund, acquired PPG Industries' U.S. and Canadian paint business—a chemical company specializing in paints and construction materials—for $550 million. Pittsburgh Paint markets the Liquid Nails brand.
Henkel's acquisition of Pittsburgh Paint's adhesives assets was never officially announced by the parties. The FTC filed its formal complaint in December 2025 to attempt to block it. This represents the second major transaction involving these assets within twelve months.
Timeline
- 2024PPG Industries sells its U.S. and Canadian paint business, including the Liquid Nails brand, to American Industrial Partners for $550 million. The new entity is renamed Pittsburgh Paint.
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