Published On: Fri, Nov 14th, 2014

Warren Buffett Buys Duracell from Procter & Gamble


Warren Buffett & Carlyle CEO David Rubenstein Discussion At DC Eco Club

 

Warren Buffett purchased Duracell from Procter & Gamble and used most of its shares in the latter company to clinch the deal, according to USA Today. Berkshire Hathaway is paying $1.7 billion in cash and returning the $4.7 billion in Procter & Gamble’s shares it owns in exchange for Duracell.

Prior to this, Berkshire was the fifth largest holder of PG’s shares, and the company was its seventh largest holding. The strategy of buying using stock is becoming increasingly common for companies, particularly Berkshire Hathaway. Buffett discussed what he looks for when buying a company, “Our long-held acquisition strategy is to acquire businesses at sensible prices that have consistent earnings power, good return on equity and able and honest management.

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