Jurisdiction(s):
United Kingdom

Key definition

Subsidiary definition

What does Subsidiary mean? In legal practice, a subsidiary is a company controlled by another company (its holding company), usually through voting power or the ability to appoint a majority of directors. The term is used in corporate and finance documents to delineate group companies, guarantees, covenants and reporting obligations. In the UK, Companies Act 2006, section 1159, defines subsidiary. A company is a subsidiary if another company: holds a majority of its voting rights; or, being a member, can appoint or remove a majority of its directors; or, being a member, controls a majority of its voting rights by agreement. Two of these tests...

UK CMA Phase 2: RB acquisition of K-Y (Johnson & Johnson) – SLC found; cleared with eight-year UK K-Y brand licence to competitor (2015)

Published by a LexisNexis Competition expert

Practice notes

CASE HUB ARCHIVED – this archived hub reflects the position as at the decision on 12 August 2015 and is no longer being maintained. See also the timeline and commentary.

Case facts

Outline

UK merger scrutiny of the proposed purchase by Reckitt Benckiser (RB) of Johnson & Johnson’s K‑Y brand. The deal creates a horizontal overlap in supplying personal lubricants to grocery retailers and nationwide retail pharmacy chains. Following a phase 2 inquiry, the CMA approved the transaction with remedies on 12 August 2015.

Latest developments

On 12 August 2015, the CMA issued its final report and cleared the merger subject to remedies, having found the transaction could result in an SLC. As a remedy, Reckitt Benckiser must grant a UK licence of the K‑Y brand to a rival for eight years.

Parties

Reckitt Benckiser supplies personal lubricants to multiple retailers under the Durex brand. RB is headquartered in the UK and operates in 66 countries worldwide. Johnson & Johnson (via its Subsidiary McNeil-PPC Inc.) supplies personal lubricants to a range of retailers under the K‑Y brand. K‑Y started as...

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Web page updated on 27/05/2026

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