OMAHA, Neb. -- Berkshire Hathaway Inc. has entered into a definitive agreement with Procter & Gamble to acquire the Duracell battery business from P&G.
In exchange for a recapitalized Duracell Co., which will include approximately $1.7 billion in cash at closing, P&G will receive shares of P&G's common stock currently held by Berkshire Hathaway having a current value of approximately $4.7 billion.
The companies expect the transaction to close in the second half of 2015 and is subject to obtaining various regulatory approvals as well as certain other customary closing conditions.
"I have always been impressed by Duracell, as a consumer and as a long-term investor in P&G and Gillette," said Warren E. Buffett, Berkshire Hathaway CEO. "Duracell is a leading global brand with top-quality products, and it will fit well within Berkshire Hathaway."
"We thank the Duracell employees for their many contributions to the business. They've made Duracell the global market leader in the battery category," said A.G. Lafley, P&G CEO. "I'm confident this new ownership structure will provide strong support for Duracell's future growth plans."
Along with Duracell, Cincinnati-based P&G's brand portfolio includes Always, Ambi Pur, Ariel, Bounty, Charmin, Crest, Dawn, Downy, Fairy, Febreze, Gain, Gillette, Head & Shoulders, Lenor, Olay, Oral-B, Pampers, Pantene, SK-II, Tide, Vicks, Wella and Whisper.
Omaha, Neb.-based Berkshire Hathaway and its subsidiaries engage in diverse business activities including property and casualty insurance and reinsurance, utilities and energy, freight rail transportation, finance, manufacturing, retailing and services.
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