Abstract

The case discusses the merger of Gillette with Procter and Gamble, the two leading consumer goods companies. It describes the recent trends and studies the ongoing consolidation in the consumer goods industry. The case presents the rationale behind the decision to merge and the perceived synergies that both the companies can achieve from the merger. It also discusses the possible threats to the merger including cultural differences and various other issues. Finally, the case ends with a debate on whether the merger would be successful in the future.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Reasons for the ongoing consolidation in the industry and its future
• The rationale for the Procter & Gamble and Gillette merger and the perceived synergies by the managements of the two companies
• Whether the merger will be successful in the long-term.

Keywords

Procter & Gamble, Gillette Co, Mergers and acquisitions, AG Lafley, James M Kilts, Unilever, Revlon Inc, Wella AG, FMCG (fast moving consumer goods) industry, Wal-Mart, Radio Frequency Identification (RFID), Product overlaps, Synergies, Reckitt Benckiser