The Norwegian Competition Authority has officially granted conditional approval for Karo Healthcare’s acquisition of Aco Hud Nordic, concluding a rigorous five-month antitrust review. The decision, finalized on March 6, 2026, ensures that the merger of these two personal care giants does not lead to a monopoly in the specialized market for therapeutic skin care products. To secure the regulator’s blessing, Karo Healthcare has committed to a significant structural remedy: the full divestment of the Locobase brand across the entire Nordic region.
The investigation began in October 2025 when the authority was first notified of the business combination. Regulators quickly identified a major competitive overlap in the sale of ointments, creams, and lotions designed for serious skin conditions, including atopic dermatitis and psoriasis. Officials argued that because Karo and Aco Hud were direct competitors in the pharmacy sector, allowing a standard merger would have stripped away the competitive pressure that keeps prices stable and innovation high for vulnerable consumers.
Under the terms of the binding agreement, Karo Healthcare must sell the rights to market and distribute Locobase to an independent third party. This divestment is comprehensive, including the product designs for all Locobase items commercialized in the Nordics, as well as existing customer and supplier contracts. Marita Mæland Skjæveland, a director at the Competition Authority, emphasized that this move was necessary to prevent a significant impediment to effective competition. Without this intervention, the disappearance of the rivalry between the two firms could have left patients with fewer choices and higher costs for essential medical skincare.
The transition will be strictly managed to ensure the Locobase brand remains a viable competitor during the handoff. Karo Healthcare is legally obligated to maintain the operation, marketing, and sales of the brand until a suitable buyer is found and approved by the Norwegian government. This “hold separate” provision prevents the brand’s value or market presence from eroding before the new owner takes over.
Project manager Ingvild Nordtveit noted that these specific measures are designed to safeguard the interests of consumers who rely on these therapeutic treatments for daily health. Although the merger has been cleared in principle, the deal cannot be legally finalized until the Competition Authority signs off on the specific buyer and the final sales agreements. This ensures that the Locobase brand ends up in the hands of a company capable of competing effectively against the newly expanded Karo Healthcare.