Mars has spent nearly $ 3 billion to buy of P & G brands
Confectionery giants – and Mars ( U.S. ) yesterday announced 3 buy pet food brand of Procter & Gamble ( P & G ) for $ 2.9 billion, in order to consolidate its leading position food industry .
The two companies said the deal will be completed in the second half of this year . However, the 3 business brand in many European countries will remain in P & G.
Mars planned acquisition of Iams , Eukanuba and Natura to complement the brand Pedigree , Whiskas and Royal Canin present . According to market research firm Euromonitor International , Mars is pet food company the world’s largest in 2012 with 23.4 % market share , slightly more than 23.1 % of Purina ( Nestle attached ) .
” This acquisition will bring Mars full potential market appeal ,” Ali Dibadj – expert Sanford C. Bernstein analyst , said on Bloomberg .
P & G to disclose this agreement will not affect the forecast earnings growth in fiscal 2014 and 2015 . Total cash earned from the deal will be used for the general operation of the giants of consumer goods .
After returning to the position of CEO P & G last year , AG Lafley has to cut costs and assess the business can be sold . The return of high expectations when Lafley was in charge for the first time , he has spent $ 57 billion acquisition of Gillette , expand P & G brand in many countries and the successful launch of several new product lines .
” It’s good to see Lafley is actively working . P & G is a company that is too big , sometimes the best way to develop is scaled down ,” Jack Russo , an analyst with the firm Edward Jones & Co. for know .
A spokesman for P & G – Paul Fox also said that Mars did not want to buy the brand operations in Europe that focuses on markets in Asia and Africa . ” P & G will continue to sell pet care segment in Europe ,” Fox said.