Procter & Gamble Co. has apparently clinched a deal to buy Gillette Co. for roughly $55 billion in stock, in a bid to create the world’s largest consumer products company, sources close to the situation said.
Under terms of the deal, P&G would offer 0.975 P&G share for each share of Gillette, according to the sources.
That would value shares of Gillette, whose products include razors and Duracell batteries, at $53.94 per share, or a nearly 18 percent premium to its closing stock price of $45.85. Shares of Gillette climbed nearly 2 percent to $45.85 yesterday.
A deal is expected to be announced today.
In acquiring Boston-based Gillette, P&G aims to expand its broad of array of consumer products – ranging from Tide laundry detergent and Tampax tampons to Crest toothpaste – into men’s grooming with Gillette’s products including Right Guard deodorant.
UBS and Goldman Sachs advised Gillette. Merrill Lynch represented P&G.
P&G’s top executives are scheduled to meet with investors in New York early today.
With Post Wires