Last week the producers and distributors of household chemicals, in particular washing powder and cleaning products, got one more confirmation that this segment of the local market is more than ever close to repartition.
Anti-Monopoly Committee of Ukraine officially allowed The Procter&Gamble Company to buy an integral property complex ZAO Olvia Beta Cleaning Products Co (in Pokrov (formerly Ordzhonikidze), Dnipropetrovsk Oblast). In the Anti-Monopoly Committee of Ukraine they consider, that this type concentration won’t lead to the monopolization and fundamental restraint of competition at the local market of household chemicals.
As stated, the washing powder, soap and sanitary towels manufacturing plant will be bought by Procter&Gamble Luxembourg Investment Sarl (Luxembourg) holding company and OOO “Procter and Gamble Manufacturing Ukraine” (in Pokrov (formerly Ordzhonikidze). The last one, specially for project made, after all the formalities have been finished, will engage in exploitation of the plant on behalf of the new owner. As the potential buyers, they hastened to asseverate representatives from Anti-Monopoly Committee that they are intended to put up $15 million in 5 years. Genereally speaking, if the bargain between The Procter&Gamble Company and Olvia Beta Cleaning Products Co is completed, then the enterprise in Pokrov (formerly Ordzhonikidze) will be 36th American company’s European plant. It is interesting to note that even if the information about the possibility of buying assets of Ukrainian-Turkish company by transnational giant had been published earlier, soon it was denied.
The rumors achieved its apotheosis in December 2003, when the source, close to ZAO “Vinnitsiabythim” began to talk about the so-called monopolization of Ukrainian market of washing powder as the fait accompli. Then marketologists of this ZAO evaluated presence of Procter&Gamble at the local market of household chemicals in 60% upon availability of the own production of the laundry detergent and cleaning products in our country. But concerned parties hastened to asseverate the public. However, the representative body of The Procter&Gamble Company in Ukraine limit themselves to strict contradiction of their control over the plant in Pokrov (formerly Ordzhonikidze), though not denying that the offer had place.
In “Olvia Beta” they claimed that the Americans’ offer hadn’t been evaluated and they hadn’t signed the contract. Besides, approxiametely at the same time from the Anti-Monopoly Committee of Ukraine leaked the information that the Austrian company Vlaxton Investment Holding GmbH, which isn’t under control of Procter&Gamble, had bought more than 25% of “Olvia Beta’s” stocks.
But even now, when the fact of negotiations has been confirmed in the form of permission to buy, in “Olvia Beta Cleaning Products Co” Dnipro office without slightest desire they talk about the saleability of the plant to the Americans. In Kyiv office of The Procter&Gamble Company they were more talkative. The Head of External Economic Relations in Procter&Gamble Viktor Prokopenko informed “DS” that negotiations are in active phase, though in virtue of confidentiality of the process he can’t disclosure data and details of the pending bargain. He also added that the interest of the company in purchasing of a ready enterprise in Pokrov (formerly Ordzhonikidze) can be attributed to desire to begin their own production of washing powder in Ukraine.
As it is well-known, Procter&Gamble plant in Boryspil makes feminine care products only.
Viktor Prokopenko gives an outright denial of possibility of shared usage of the plant by both of the companies, though he assumed that after its purchasing Procter & Gamble will continue producing previous owner trademarks – Gala, Dax and so on, combining with production their own Ariel and Tide.