According to a report on the website of Reuters, terms of the transaction calls for P&G to swap 0.975 shares of its stock for each Gillette share, the companies said. That values Gillette at $53.94 per share.
P&G also announced plans to buy back between $18-22 billion of the company's stock within the next 18 months. Warren Buffett, who currently owns about 9% of Gillette's stock, said he would purchase stock to own 100 million shares of P&G by the time the deal closes, the report said.
P&G said it would achieve revenue and cost synergies of between $14-16 billion from the transaction, which would also result in the loss of about 6,000 jobs, or 4% of the firms' combined workforce.
