Edgewell Personal Care Co., the maker of Schick razors, has elected not to fight the FTC lawsuit banning the proposed acquisition of Harry’s Inc. This likely puts money-losing Harry’s in a difficult position.
Per the article, Harry’s has informed Edgewell that it intends to pursue litigation against them. I would think that Harry’s viewed this as an opportunity to shift the burden of profitability to a larger entity, and that the company is massively disappointed by this outcome.
While I do not have all of the facts, it does not surprise me that Edgewell would abandon the acquisition without a fight. If the rationale is that “the tie-up would eliminate one of the most important competitive forces in a shaving industry that has long been controlled by two entrenched companies,” then there’s little concern that Edgewell’s competition will make the acquisition. Edgewell likely realizes that Harry’s will have to develop a profitable business model to survive, which makes disruption far more difficult.