Reckitt licenses K-Y brand in Britain to unit of Germany's Stada

LONDON, June 20 (Reuters) - Consumer goods group Reckitt Benckiser has temporarily licensed the K-Y brand of personal lubricants in the United Kingdom to a British unit of Germany's Stada, a UK watchdog said on Monday.

The move clears the way for Reckitt Benckiser (Xetra: A0M1W6 - news) 's purchase of the brand from Johnson & Johnson (NYSE: JNJ - news) to close.

The UK Competition and Markets Authority said last year that the acquisition of K-Y by Reckitt, which already owns the Durex brand, could reduce competition for personal lubricants and lead to higher prices. It (Other OTC: ITGL - news) required Reckitt to license the brand for eight years, to give competitors time to develop rival products.

The agency said on Monday that Reckitt agreed to license K-Y in Britain to over-the-counter medicine maker Thornton & Ross, which was bought by German generic drugmaker Stada in 2013.

(Reporting by Martinne Geller in London; Editing by Susan Fenton)