JNJ Johnson and Johnson

By Tapan Panchal

LONDON--U.K. consumer goods company Reckitt Benckiser Group PLC's (RB.LN) anticipated acquisition of the K-Y brand could lead to higher prices for personal lubricants, the U.K.'s competition regulator said Friday.

Reckitt, which makes Durex condoms and already sells lubricant under the Durex brand, signed an agreement in March 2014 to buy the K-Y brand of lubricants from Johnson & Johnson (JNJ) subsidiary McNeil-PPC Inc. for an undisclosed sum.

The U.K.'s Competition and Markets Authority said that it provisionally believes the merger could lead to a substantial reduction in competition, possibly through higher prices.

"We are now inviting responses to these provisional findings and will continue to assess all the evidence before we make our final decision," inquiry chairman Phil Evans said.

Write to Tapan Panchal at tapan.panchal@wsj.com

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