The European Commission has approved the acquisition of Procter & Gamble's European consumer tissue business by Svenska Cellulosa Aktiebolaget (SCA) at Phase I. Both companies produce branded and private label paper hankies, kitchen towels and toilet paper. Although the merger leads to high market shares in a range of relevant markets, the Commission concluded that for the most part the parties are significantly constrained by private label products and the resulting bargaining power of retailers. As a result, the Commission only required the divestment of one of the paper hankies brands in one of the geographic markets. Mike Walker, Pablo Florian and Nicole Hildebrandt advised Jones Day and P&G throughout the merger proceedings.