P&G’s Duracell Sold
Berkshire Hathaway Inc has agreed to acquire Procter & Gamble Co’s Duracell battery unit in a complex transaction that lets Berkshire Chairman Warren Buffett buy a business he has supported for two decades and shave his company’s tax bill.
Rather than pay cash, Berkshire will give P&G $4.7 billion of the shares it now owns in the world’s largest consumer products company. P&G will infuse $1.8 billion in cash into Duracell before the expected closing in the second half of 2015.
The transaction announced on Thursday helps P&G Chief Executive A.G. Lafley streamline his Cincinnati-based company by shedding slow-growing brands and focus on about 80 brands that generate most of its profit and revenue. P&G’s better-known products include Tide laundry detergent and Pampers diapers.