Procter & Gamble’s plan to acquire Gillette for $57 billion has been approved by shareholders of both companies. As a result of the merger, P&G will increase the products it sells, adding items like razors and batteries.
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.
More than 97% of the P&G votes cast were in favor of the deal, which is the equivalent of 70% of P&G’s outstanding shares, the company said. Gillette’s said 75% of its outstanding shares were voted, with more than 96% of them in favor of the buyout.
Cincinnati-based P&G — which makes Tide detergent, Folgers coffee, Pampers diapers and numerous other billion-dollar brands — struck a deal to acquire Boston-based Gillette in January. Best-known for its wet-shave razors, Gillette also makes Duracell batteries, Braun electric razors and small appliances, and Oral-B dental-care products.
The combined company is expected to have over $65 billion in sales annually. The deal is still subject to regulatory approval, and is expected to reach completion sometime in the fall.
P&G shares went up 36 cents in morning trading today reaching $54.26 on the New York Stock Exchange. Shares of Gillette also went up 37 cents reaching $52.00.
Chris is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.
