business news in context, analysis with attitude

Procter & Gamble, the nation’s largest consumer products company, has reached an agreement to buy Gillette Co. for $57 billion in stock.

The acquisition, which will give P&G Gillette’s razor business as well as Duracell batteries and Right Guard deodorant, will create the world’s largest consumer products business, moving past Unilever.

Reuters reports that P&G believes it can cut costs at Gillette by up to $16 billion, and plans to lay off four percent of the two companies’ combined 140,000 employees.

The deal is scheduled to be announced today.
KC's View:
We’ve read a number of stories suggesting that 2005 is likely to be a big M&A year. Expect this to be the first of many.