> Warren Buffett Blog: Buffett to buy Duracell company that makes batteries

Monday, November 17, 2014

Buffett to buy Duracell company that makes batteries

Berkshire Hathaway has announced that it has entered into a “definitive agreement” with Procter and Gamble (P&G) where it will acquire the Duracell battery business from P&G.

In a press statement, the company said, pursuant to the agreement, in exchange for a recapitalised Duracell Company, which will include approximately US$1.7 billion in cash at closing, P&G will receive shares of P&G’s common stock currently held by Berkshire Hathaway having a current value of approximately $4.7 billion. The transaction is expected to close in the second half of 2015 and is subject to obtaining various regulatory approvals as well as certain other customary closing conditions.

Warren Buffett, Berkshire Hathaway chief executive officer, said that he has “always been impressed by Duracell, as a consumer and as a long-term investor in P&G and Gillette”. Buffett added that Duracell is a leading global brand with top quality products, and it will fit well within Berkshire Hathaway.