Procter & Gamble profits rise 5%

PROCTER & GAMBLE said yesterday quarterly profit rose 5% as products like an overnight tooth whitener and the weak dollar helped boost sales.

The results came a day after the European Commission cleared Procter & Gamble’s takeover of German hair care group Wella.

The Commission said in a statement that it “cleared the proposed acquisition, subject to a package of commitments”. Procter & Gamble agreed to grant a five-year licence, followed by a three-year period without competing, for the entire range of Herbal Essences hair care products in Ireland, Norway and Sweden. P&G also agreed to similar conditions for its colorant brands: Loving Care, Lasting Color, Glints, Born Blonde and Highlights, the Wella styling brand Silvikrin in Ireland and the Wella styling brand Catzy in Norway.

“The commission considers the remedy package consisting of the licensing of these brands together with certain other assets offered by the parties, clearly rules out serious doubts in the hair care markets in Ireland, Norway and Sweden.”

P&G, the leading US consumer products company whose products include Tide detergent, has said the deal moves it into the $10 billion salon products business and strengthens its colouring and styling products business in Europe.

The $5.7bn deal is the largest in P&G's history, exceeding the $4.95bn P&G paid for Clairol in 2001.