Buffett recharges with $3bn Duracell bid
WARREN Buffett’s Berkshire Hathaway has agreed to acquire Proctor & Gamble’s Duracell battery business in exchange for its $4.7bn (£2.9bn) stake in P&G, the consumer goods company announced yesterday.
P&G, whose brands include Pampers and Gillette, also expects to contribute around $1.8bn in cash to capitalise Duracell, known for its trademark bunny (pictured), before the deal’s completion.
The transaction’s unusual structure is believed to be aimed at lowering the overall tax bill for both parties. However, the “stock swap” deal is not unfamiliar to Buffett. Earlier this year, he traded his shares in American conglomerate Graham Holdings for a Miami television station.
Buffett commented: “I have always been impressed by Duracell, as a consumer and as a long-term investor in P&G and Gillette.
“Duracell is a leading global brand with top quality products, and it will fit well within Berkshire Hathaway.”
The deal is expected to be completed in the second half of 2015 pending the necessary regulatory approvals, P&G added.