(BRK.A), (BRK.B)
Berkshire Hathaway has gained approval from the European Commission for its acquisition of battery-maker Duracell from Procter & Gamble.
In a statement released by the Commission:
“The Commission concluded that the proposed acquisition would not raise competition concerns given the absence of horizontal overlaps and the existence of numerous competitors in the vertically related market where the parties are active. The transaction was examined under the normal merger review procedure.”
About Duracell
With Duracell’s $2 billion in annual revenue, Berkshire is acquiring the market leader in batteries for the home and workplace. The company has highly recognizable brands that consumers in home and work settings are willing to pay more for than private label store brands. According to the company, Duracell’s CopperTop® and Quantum® command the highest average percent of spend among battery brands with 33% and 16%, respectively.
Combined, the two product lines account for close to 50% of the market.
For a look at what type of company Berkshire is getting read this special report.
©2015 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.