Thursday, November 13, 2014

Companies buying: Warren Buffett grabs the Duracell bunny – THE WORLD

Companies buying: Warren Buffett grabs the Duracell bunny – THE WORLD

Warren Buffett has come to the hare: The US billionaire takes over with his investment company Berkshire Hathaway, the battery business of the world’s biggest consumer goods company Procter & amp; Gamble (P & G). Through their advertising has become known with the tireless drumming Duracell bunnies company is the market leader in batteries. Last year dominated Duracell 25 percent of the world market.

The selling price is three billion dollars (2.4 billion euros). Buffett and P & amp; G employ a savvy ring exchange in order to consummate the transaction. P & amp; G is thereby equip Duracell first with cash of 1.7 billion dollars. Then Buffett trades his P & G shares worth $ 4.7 billion against the battery manufacturer

Both sides gain by tax benefits.. For P & G also makes the separation of Duracell less complicated than imagined. The consumer goods manufacturers had already announced in October to try to eliminate the battery division. Had P & G Duracell floated, the Group would have to offer to its shareholders through a lengthy process, a portion of their P & amp; G to exchange shares in Duracell shares. Business with the Star Investor Buffett saves P & amp;. G hence nerves and money for legal fees

Buffett, however long been pursuing a strategy from its stock shares to separate. He instead wants to have complete and companies they control completely. If he had his shareholding in P & amp; G, however, sold regularly, he would have to pull the trigger high taxes. G

Earlier this year, before the investor took a similar maneuver;. With 52.8 million shares Buffett is the fifth-largest shareholder of P & amp. He exchanged his shares in the US media company Graham Holding against a television station in Miami, which will now belongs to him 100 percent.



Buffett buys only businesses that he understands

Buffett is nicknamed “The Oracle of Omaha”, because he is known for his keen sense for the long term lucrative investments and market trends worldwide. One of his wisdom is to only invest in businesses that he understands. Consumer brands are therefore always been its core business. . His greatest share packages include shares in Coca Cola, IBM and Wal-Mart

With the recent release of the quarterly results of his company, Buffett said: “Our long established investment strategy is, companies to buy at reasonable prices which provide stable income, have good profits and a qualified and honest management. “

The sale of Duracell must be examined by the Cartel. In the second half of 2015. Buffett and P & amp count; G with the completion of the transaction. Buffett wrote in a statement. “I was always very impressed by Duracell, both as consumers and as a long-term investor”

Duracell was the first Micro-Cell Battery

The story of Duracell goes back to the 1920s, when the business partner Samuel Ruben and Philip Rogers Mallory initially produced mercury batteries for the US Army. In 1964 the Duracell brand, as the company invented the first small micro cell batteries – also known as AAA batteries. These were then required, for example for the emerging camera flashes. The Duracell name came from “durable cell battery”, which means as much as long-lasting cell battery.

Over the years, has changed several times the owner Duracell. Prior to P & G, the battery division belonged since 1996 to the razor manufacturer Gillette. P & amp;. G bought Duracell more than an accessory, as the consumer goods company in 2005 took over Gillette for $ 57 billion in the year

The current sale of Duracell is part of a large scale divestment strategy of P & amp; G to come to more capital. The company had announced in August, to separate from those brands that have little growth potential or do not fit into the core business of the manufacturer of diapers, hair care products and detergents. The latter was the case with Duracell. Since the beginning of P & amp has; G already sold ten divisions. Duracell however, is the largest divestment of the company’s history

Buffett, 2005 was also the way to the Gillette acquisition by P & amp;. G involved. His company Berkshire Hathaway were then nine percent of Gillette. When selling to P & amp; G Buffett was so involuntarily one of the largest shareholders of P & amp; G. Over the years he had gradually sold his shares in the consumer goods manufacturer. The package worth $ 4.7 billion was the remnant of the former business.

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