US court blocks Henkel’s $725 million acquisition of Liquid Nails

A US court has blocked a $725 million acquisition attempt by Henkel to purchase Liquid Nails from the private equity firm American Industrial Partners. The decision follows a permanent injunction issued by District Judge Katherine Polk Failla in the Southern District of New York.

The Federal Trade Commission (FTC) filed suit in December 2025 to prevent the merger, arguing it would consolidate the two largest players in the construction adhesive market. The FTC described the potential combination of Henkel’s Loctite brand and Liquid Nails as creating the ‘Coke and Pepsi of adhesives,’ warning that the deal would reduce competition, lead to higher prices, and lower product quality for American consumers.

Henkel has stated that it is reviewing the court’s decision. During legal proceedings, Henkel’s counsel argued that Liquid Nails and Loctite compete in significantly different ways.