CINCINNATI , July 15, 2005 – The Procter & Gamble Company
(NYSE: PG) learned today that the European Commission has
cleared the proposed merger with the Gillette Company.
“Today’s announcement from the European Commission
is excellent news,” said A.G. Lafley, P&G chairman, president
and chief executive. “The EU clearance is a significant milestone
as we work to combine two of the world’s leading companies
to benefit consumers, customers and shareholders.” Today’s
announcement follows Tuesday’s overwhelming vote by the shareholders
of both companies in support of the merger.
As part of the regulatory review process, P&G announced
today that it plans to divest its SpinBrush battery toothbrush
business, sold mainly in the United States , Canada , Europe
and Japan . P&G has retained Merrill Lynch as an advisor
and is in the process of
soliciting bids.
SpinBrush is a leading battery operated toothbrush which
has been at the forefront of developing this technology. In
the United States , SpinBrush has leading awareness and consumers
consider it to be the best battery operated toothbrush. Additionally,
it is the #1 dental professional recommended battery operated
toothbrush.
The company expects the Gillette deal to close in the Fall,
2005 once the merger has received clearances from other regulatory
authorities, including the U. S. Federal Trade Commission.
About P&G
Two billion times a day,
P&G brands touch the lives
of people around the world.
The company has one of the largest and strongest portfolios
of trusted, quality brands, including Pampers®, Tide®, Ariel®,
Always®, Whisper®, Pantene®, Bounty®, Pringles®, Folgers®,
Charmin®, Downy®, Lenor®, Iams®, Crest®, Actonel®, Olay®
and Clairol Nice ‘n Easy®. The P&G community
consists of nearly 110,000
employees working in almost 80 countries worldwide. Please
visit www.pg.com for the latest news and in-depth information
about P&G and its brands.
Forward-Looking Statements
All
statements, other than statements of historical fact included
in this release, are forward-looking statements, as that term
is defined in the Private Securities Litigation Reform Act
of 1995. In addition to the risks and uncertainties noted
in this release, there are certain factors that could cause
actual results to differ materially from those anticipated
by some of the statements
made. These include: (1) the ability to achieve business plans,
including with respect to lower income consumers and growing
existing sales and volume profitably despite high levels of
competitive activity, especially with respect to the product
categories and geographical markets (including developing
markets) in which the Company has chosen to focus; (2) the
ability to successfully execute, manage and integrate key
acquisitions and mergers, including (i) the Domination and
Profit Transfer Agreement with Wella, and (ii) the Company’s
agreement to merge with The Gillette Company, including obtaining
the related required regulatory approvals; (3) the ability
to manage and maintain key customer relationships; (4) the
ability to maintain key manufacturing and supply sources (including
sole supplier and plant manufacturing sources); (5) the ability
to successfully manage regulatory, tax and legal matters (including
product liability, patent, and other intellectual property
matters), and to resolve pending matters within current estimates;
(6) the ability to successfully implement, achieve and sustain
cost improvement plans in manufacturing and overhead areas,
including the Company's outsourcing projects; (7) the ability
to successfully manage currency (including currency issues
in volatile countries), debt (including debt related to the
Company’s announced plan to repurchase shares of the Company’s
stock), interest rate and certain commodity cost exposures;
(8) the ability to manage the continued global political and/or
economic uncertainty and disruptions, especially in the Company's
significant geographical markets, as well as any political
and/or economic uncertainty and disruptions due to terrorist
activities; (9) the ability to successfully manage the pattern
of sales, including the variation in sales volume within periods;
(10) the ability to successfully manage competitive factors,
including prices, promotional incentives and trade terms for
products; (11) the ability to obtain patents and respond to
technological advances attained by competitors and patents
granted to competitors; (12) the ability to successfully manage
increases in the prices of raw materials used to make the
Company's products; (13) the ability to stay close to consumers
in an era of increased media fragmentation; and (14) the ability
to stay on the leading edge of innovation. For additional
information concerning factors that could cause actual results
to materially differ from those projected herein, please refer
to our most recent 10-K, 10-Q and 8-K reports.
# # #
Media Contacts:
P&G Western Europe -
Scott Stewart
Tel : + 32 2 456 5656
(European Media Centre)
Tel : +
32 2 456 2877
(office)
Tel : +
32 497 59 1513 (mobile)
P&G Corporate Media Centre -
US
media call : 1 (866) PROCTER
(1 866 776 2837)
Media outside
the US call : + 00 1 513
945 9087
Investor Relations
-
Thomas
Tippl : Tel US + 00 1 (513)
983 2414
