Henkel’s $725M Liquid Nails Deal is Blocked

Need to Know
- A federal court granted the FTC a permanent injunction blocking Henkel’s proposed $725 million acquisition of Liquid Nails.
- The Aug. 14 ruling followed a seven-day trial in the U.S. District Court for the Southern District of New York.
- The FTC said combining Henkel’s Loctite brand with Liquid Nails could lead to higher prices, lower quality and reduced innovation.
A federal court has permanently blocked Henkel AG & Co. KGaA’s proposed $725 million acquisition of Liquid Nails from American Industrial Partners.
The U.S. District Court for the Southern District of New York granted the Federal Trade Commission’s request for a permanent injunction Aug. 14 following a seven-day trial. Henkel manufactures Loctite construction adhesives, which the agency described as Liquid Nails’ main competitor.
The FTC challenged the transaction in December 2025, arguing that the combination would eliminate direct competition between the brands and could lead to higher prices, lower quality and reduced innovation. PCI covered the initial challenge when the agency filed suit.
The FTC also described the result as part of its newer approach to seeking permanent federal-court injunctions without continuing parallel administrative proceedings.
Sources:
- Statement on FTC Win Blocking Loctite, Liquid Nails Construction Adhesive Merger
- FTC - Henkel, A-Paint
The decision keeps two major construction-adhesive brands under separate ownership and shows how regulators may approach future consolidation in coatings and adhesives markets. Follow PCI’s adhesives and sealants coverage for more market and formulation developments.
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