01.28.05
Procter & Gamble (P&G) executives announced that the company will buy Gillette Co. for $55.8 billion. The combined company is expected to generate $60 billion annually.
Following the acquisition, half of P&G's roster of products will comprise health care, personal care and beauty products, according to executives. Gillette hopes to widen its reach through the deal to help the company sell more razors and batteries in large developing markets such as China.
Before the acquisition can go through, the FTC (Federal Trade Commission) will investigate the deal thoroughly and may require P&G to divest some brands into overlapping lines of business, such as deodorants and oral care. However, "The overlaps are minimal," said Clay Daley, P&G's chief financial officer. "There are some, and so we'll obviously need to work with the government authorities on hopefully resolving these overlaps."
P&G executives expect the deal to close this fall.
Following the acquisition, half of P&G's roster of products will comprise health care, personal care and beauty products, according to executives. Gillette hopes to widen its reach through the deal to help the company sell more razors and batteries in large developing markets such as China.
Before the acquisition can go through, the FTC (Federal Trade Commission) will investigate the deal thoroughly and may require P&G to divest some brands into overlapping lines of business, such as deodorants and oral care. However, "The overlaps are minimal," said Clay Daley, P&G's chief financial officer. "There are some, and so we'll obviously need to work with the government authorities on hopefully resolving these overlaps."
P&G executives expect the deal to close this fall.