EU regulators say yes to P&G-Gillette merger

Manufacturing News, Source : TheManufacturer.com
Published : 15 Jul 2005 21:02

European Union antitrust regulators gave the thumbs-up to the proposed $57 billion takeover of Gillette by Procter & Gamble, but only after P&G agreed to divest its battery toothbrush business.

P&G still needs regulatory approval from the US Federal Trade Commission. The company hopes to complete the deal in the fall of this year.

The EU’s investigation found that the only major overlap between the two companies in Europe was in the battery toothbrush market. Gillette's Oral-B brand toothbrush had a 43.8 percent share of the European market in 2004, while P&G’s SpinBrush had 6.7 percent.

At a meeting earlier this week, almost 97 percent of Procter & Gamble shareholders and 96 percent of Gillette shareholders approved deal. It’s the largest acquisition in the 167-year history of P&G, whose range of brands includes Crest, Tide and Head & Shoulders. Besides its line of razors, Boston-based Gillette makes Braun electric shavers, Oral-B toothbrushes and Duracell batteries.

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