Statement on FTC Win Blocking Loctite, Liquid Nails Construction Adhesive Merger

On August 14, 2026, the U.S. District Court for the Southern District of New York granted the FTC’s request for a permanent injunction to halt Henkel’s proposed $725 million purchase of Liquid Nails from American Industrial Partners. The court ruled after a seven-day trial that the merger would harm competition in the construction adhesives market. The FTC argued the deal would eliminate direct competition between Loctite and Liquid Nails, leading to higher prices and reduced product quality for consumers.

The FTC initiated the challenge in December 2025, asserting that the merger would concentrate market power in the hands of Henkel, which already dominates the industry with its Loctite brand. The Commission contended that without Liquid Nails as a competitor, innovation in adhesives would stagnate, further disadvantaging homebuilders and repair contractors. The court’s decision aligns with the FTC’s expanded strategy to seek immediate injunctions in merger cases rather than pursuing lengthy administrative proceedings.

FTC Bureau of Competition Director Daniel Guarnera praised the trial team’s efforts, emphasizing the broader impact on housing affordability. He stated that the merger would have raised costs for a critical home improvement product, affecting both new construction and maintenance projects nationwide. The ruling ensures continued competition between Loctite and Liquid Nails, which the FTC argues will keep prices lower and quality higher for American consumers.

The decision reflects the FTC’s commitment to enforcing antitrust laws under the current administration, as noted by Guarnera’s reference to the ‘Trump-Vance FTC.’ The agency framed the case as part of a broader effort to reduce housing expenses by preventing anticompetitive consolidation in essential construction materials. The injunction marks a significant enforcement action in the FTC’s ongoing scrutiny of mergers that could harm consumer welfare.