Procter & Gamble has now recieved approval from the European Union to go forward with its purchase of Gillette for $57 billion, just days after winning approval from shareholders of both companies.
Gillette shareholders will get 0.975 shares of P&G common stock for each share of Gillette that they own. About 71% of the combined company will be owned by P&G shareholders.
P&G agreed to divest the SpinBrush unit and to grant a license for the Crest, AZ and Blendi brands used on the battery- operated toothbrushes, the European Commission said in a statement today. The approval ends investor uncertainty about the status of the transaction in Europe and averts an in-depth investigation by European antitrust officials that could have delayed a ruling for another four months.
“It’s very positive for both companies,” said Dan Popowics, who helps manage about $20 billion at Cincinnati-based Fifth Third Asset Management, including P&G shares. “There was some concern that the timing of the approval would be pushed out. Now the transaction can move along.”
The combined company is expected to have over $65 billion in sales annually. The deal is expected to reach completion sometime in the fall.
On the New York Stock Exchange, Procter & Gamble sahres dropped 13 cents to $54.62 in afternoon trading today. Gillette shares went up 10 cents to $52.73.
Chris is a staff writer for murdok. Visit murdok for the latest ebusiness news.
