Henkel/Liquid Nails: The Evidence That Drove The Court’s Merger Decision

The Southern District of New York’s decision permanently enjoining Henkel’s proposed $725 million acquisition of Liquid Nails from American Industrial Partners (AIP) shows how courts may evaluate horizontal mergers of established, differentiated brands sold through concentrated retail channels. It also shows how the current FTC approaches deal challenges. The Court described Loctite and Liquid Nails as “the true behemoths of the industry.” It granted the injunction on August 14, 2026, after a seven-day trial, and released the full redacted decision on September 11.

Market Definition

The FTC alleged that the market was “construction adhesive cartridges sold in the retail channel in the United States.” Defendants argued that market definition was too narrow because it excluded the professional channel, and too broad because it grouped products that don’t compete closely. The Court disagreed. It credited the FTC’s economic analysis and a 2022 supply shortage that served as a natural