Shareholders of both personal care appliance maker The Gillette Company and Procter & Gamble (P&G) have approved the proposed merge of the two companies.
The companies held a meeting with shareholders, who then approved the merger. According to P&G, the merger was approved by 96.5 percent of the votes cast, equivalent of 70.3 percent of the issued and outstanding shares.
"We're extremely pleased to see shareholders recognize the value in combining our two companies," A. G. Lafley, P&G chairman, president, and CEO, said. "The combination will enable us to leverage each company's strengths to drive more consistent and stronger consumer and shareholder value over the long term."
Announced Jan. 28, 2005, the transaction is valued at U.S. $57 billion. Gillette shareholders will receive .975 shares of P&G common stock for each share of Gillette common stock. P&G shareholders will continue to own their existing P&G shares.
Once the merger is completed, P&G shareholders will own approximately 71 percent of the combined company, and Gillette shareholders will own approximately 29 percent of the combined company on a fully diluted basis.
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