P&G, Gillette May Divest Some Products
Tuesday June 21, 10:54 am ET
P&G, Gillette Preparing to Divest Some Oral Products As They Seek Merger OK, Report Says
CINCINNATI (AP) -- Procter & Gamble Co. and Gillette Co. are preparing to divest some of their smaller toothpaste, dental-floss and toothbrush product lines as the companies seek antitrust approval for their merger, The Wall Street Journal reported Tuesday.
The newspaper, which based its story on people familiar with the matter whom it did not identify, said the proposed divestitures are expected to be valued at a few hundred million dollars.
"Any plans for divestiture are either premature or speculative at this time," Gillette spokesman Eric Kraus said on Tuesday. Messages seeking comment were left for P&G.
Cincinnati-based P&G, the maker of Pampers, Crest, Tide and Head & Shoulders, struck a deal in January to acquire Gillette for about $57 billion. The Boston-based Gillette makes razors, Braun electric shavers, Oral-B toothbrushes and Duracell batteries.
As part of its merger review process, the European Commission has been sending letters to P&G and Gillette competitors and suppliers asking how the proposed deal would affect their businesses, the newspaper said. The move is designed to identify any antitrust concerns and aid regulators in their negotiations with companies seeking merger approval.
The commission has until July 1 to decide whether to approve the merger or to investigate further.
Shares of P&G fell 3 cents to $54.22 in morning trading on the New York Stock Exchange. Gillette's shares declined 2 cents to $51.98 on the exchange.
Procter & Gamble: pg.com
Gillette: gillette.com
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