Procter & Gamble to Close Gillette Acquisition Sep 30, 2005

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The Procter & Gamble Company (P&G) was informed that the U.S. Federal Trade Commission (FTC) has cleared the proposed acquisition of the personal care appliance maker Gillette Company.

"We are excited that we can now move on to the Gillette closing and integration," said A.G. Lafley, P&G chairman, president, and CEO. "The addition of Gillette will broaden our line-up to 22 brands with over a billion dollars in sales and will take us into new product areas, creating tremendous new opportunities to bring great products to consumers, great value to customers and increase shareholder value."

As part of the review process, the FTC is requiring several divestitures in categories where the companies have overlapping businesses. Prior to closing, P&G was required to divest SpinBrush, a battery powered toothbrush. Earlier this month, P&G announced an agreement to divest SpinBrush to Church & Dwight.

P&G will move ahead with the process for the other required divestitures during the October to December quarter. Now that the deal has received regulatory clearance in the U.S. and EU, the company expects the acquisition to become effective on Oct. 1, 2005.

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