P&G to Buy Gillette in $57 Billion Deal

Procter & Gamble Co. is buying razor and battery maker Gillette Co.
for about $57 billion in a stock deal that would create the world's
largest stable of consumer products, the companies announced early
Friday.

If
approved by regulators, the deal would combine such brands as
Gillette's razors, Duracell batteries, and Oral B dental products with
P&G's Tide detergent, Pampers, and Pantene hair products.

The
transaction calls for P&G to pay about 0.975 of its shares for each
share of Boston-based Gillette, which would value the company at about
$54 per share, based on the closing P&G share price of $55.32 on
Thursday.

P&G also plans to buy back $18 billion to $22
billion of its stock during the next year to 18 months, the companies
said in a joint announcement. That will ultimately result in the deal
being financed through about 60 percent stock and 40 percent cash, the
companies said.

P&G sales would surge to more than $60
billion annually, from about $51 billion now. The deal is subject to
review by regulators and shareholders of both companies.