The Federal Trade Commission (FTC) of the United States has opposed the merger of two adhesive giants, describing them as the Coca-Cola and Pepsi of the adhesive industry.
On Monday, July 13th, the FTC urged a judge to block the $725 million acquisition by Henkel AG of a stake in Pittsburgh Paint Co. The commission stated that this deal would consolidate two major players in the liquid adhesive market, harming market competition.
The case, known as “FTC v. Henkel AG,” was heard in the Southern District Federal Court in New York in December 2025. The trial, without a jury, is expected to last for several weeks.
Henkel is the world’s largest adhesive manufacturer, with brands such as Loctite and LePage. Pittsburgh Paint Co. is currently owned by private equity firm American Industrial Partners, with the brand Liquid Nails under its umbrella.
FTC lawyer Abby Lauren Dennis remarked during the trial that these two companies are “like the Coca-Cola and Pepsi of the adhesive world.”
The FTC is seeking to block this undisclosed merger. The commission argued that these two companies have long viewed each other as primary competitors.
Dennis told Judge Katherine Polk Failla that both Loctite and Liquid Nails have consistently held the top two positions in the market, dominating the liquid adhesive sector with other brands unable to compete effectively.
“Americans should not be at the mercy of big corporations,” she said.
David Gelfand, the lawyer representing Henkel AG, countered by stating that Liquid Nails and Loctite compete in different ways. He explained that a significant portion of Liquid Nails sales come from lower-priced adhesives, while Loctite focuses on higher-end products.
Gelfand clarified that the differences between the two products are substantial and that a merger would not lead to price increases.
He also claimed that large retailers selling these products have strong bargaining power, making the entry of new competitors or expansion of product lines relatively easy.
This transaction marks the second acquisition involving the Liquid Nails brand in the past 12 months.
In 2024, PPG Industries sold its architectural coatings business in the United States and Canada to American Industrial Partners for $550 million. This newly established independent company has reverted back to its original name – Pittsburgh Paint Co.