Warren Buffett's investment house Berkshire Hathaway today announced the purchase of battery maker Duracell in a $4.7 billion deal with Procter & Gamble.
Berkshire Hathaway said it will pay the US consumer goods giant for Duracell with $4.7 billion of its own P&G shares.
Ahead of that transaction, though, P&G has committed to inject $1.8 billion into Duracell to recapitalise it.
Duracell is one of the world's leading battery brands, acquired by P&G in 2005 as part of its takeover of shaving goods group Gillette.
The company reportedly has 25% of the global battery market with $2 billion in annual sales, producing from three factories in the US, one in Belgium and one in China.
"I have always been impressed by Duracell, as a consumer and as a long-term investor in P&G and Gillette," Berkshire founder and chief executive Buffett said.
"Duracell is a leading global brand with top quality products, and it will fit well within Berkshire Hathaway," he added.
Last week Berkshire, which maintains a massive portfolio of investments in leading companies from insurer Geico to ketchup maker Heinz and executive jet firm NetJets, reported a $107m fall in third quarter net profits to $4.62 billion despite a 29% rise in operating earnings.
