Warren Buffett's cash-laden investment house Berkshire Hathaway announced today the purchase of battery maker Duracell in a USD 4.7 billion deal with Procter & Gamble.
Berkshire Hathaway said it will pay the US consumer goods giant for Duracell with USD 4.7 billion of its own P&G shares.
Ahead of that transaction, though, P&G has committed to inject USD 1.8 billion into Duracell to recapitalise it.
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Duracell is one of the world's leading battery brands, acquired by P&G in 2005 as part of its takeover of shaving goods group Gillette.
The company reportedly has 25 per cent of the global battery market with USD 2 billion in annual sales, producing from three factories in the United States, one in Belgium and one in China.
"I have always been impressed by Duracell, as a consumer and as a long-term investor in P&G and Gillette," Berkshire founder and chief executive Buffett said in a statement.
"Duracell is a leading global brand with top quality products, and it will fit well within Berkshire Hathaway."
Last week Berkshire, which maintains a massive portfolio of investments in leading companies from insurer Geico to ketchup maker Heinz and executive jet firm NetJets, reported a USD 107 million fall in third quarter net profits to USD 4.62 billion despite a 29 per cent rise in operating earnings.
Berkshire B shares rose 0.3 per cent to USD 146.01 in opening trade today, while P&G lost 0.5 per cent to USD 89.06.
