Buffett's Berkshire buys Duracell from P&G

(MENAFN- AFP) Warren Buffett's cash-laden investment house Berkshire Hathaway announced Thursday 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 recapitalize 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 percent of the global battery market with $2 billion in annual sales, producing from three factories in the United States, 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 in a statement.

"Duracell is a leading global brand with top quality products, and it will fit well within Berkshire Hathaway."

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 $107 million fall in third quarter net profits to $4.62 billion despite a 29 percent rise in operating earnings.

Berkshire B shares rose 0.3 percent to $146.01 in opening trade Thursday, while P&G lost 0.5 percent to $89.06.