Colgate competes with other leading personal care companies such as Procter & Gamble ( PG ), Unilever ( UL ) and Kimberly-Clark ( KMB ). While a volume-driven growth strategy might put Colgate at an advantage in the lower-income but high-growth emerging markets, we fear that persistent inflation could erode profit margins. While the deal promises to strengthen Colgate's personal care business in Europe, we're keeping a watch on the merger-related expenses and the post-merger integration costs yet to be incurred.