Procter & Gamble is buying razor and battery maker Gillette for $57 billion in a mostly stock deal that would create the world's largest...

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CINCINNATI — Procter & Gamble is buying razor and battery maker Gillette for $57 billion in a mostly stock deal that would create the world’s largest stable of consumer products, the companies announced early today.

If approved by regulators, the deal would combine such brands as Gillette’s razors, Duracell batteries and Oral B dental products with P&G’s Tide detergent, Pampers and Pantene hair products.

The transaction calls for Cincinnati-based P&G to pay about 0.975 of its shares for each share of Boston-based Gillette, which would value the company at about $54 per share, based on the closing P&G share price of $55.32 yesterday.

P&G also plans to buy back $18 billion to $22 billion of P&G’s stock during the next year to 18 months, the companies said in a joint announcement. That will ultimately result in the deal being financed through about 60 percent stock and 40 percent cash, the companies said.

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The boards of both companies approved the deal yesterday. Company executives planned an announcement this morning at a Manhattan hotel.

P&G sales would surge to more than $60 billion annually, from about $51 billion now.

“This combination of two best-in-class consumer products companies, at a time when they are both operating from a position of strength, is a unique opportunity,” said A.G. Lafley, P&G’s chairman, president and chief executive.