Procter & Gamble Germany has had the green light from US regulatory body to proceed with its acquisition of Wella.
In a statement this week the company said that it will continue to pursue the necessary regulatory and governmental approvals in other major markets around the world including the European Union.
The move follows swiftly on from the final results from the tender offer for Wella shares. The additional acceptance period, required by German law, expired at midnight CET on 20 June, 2003.
9,053,768 voting and 10,167,531 preference shares of Wella were tendered, representing 20.51 per cent and 43.49 per cent, respectively, of each class of shares, or a total of 28.47 per cent of the registered share capital.
The tendered shares combined with the controlling interest that P&G secured through its share purchase agreement with the majority shareholders brough P&G's total ownership of Wella to 79.17 per cent of the total registered share capital and about 84.9 per cent of the value of the outstanding shares. The value percentage is based on the tender offer prices, and excludes the treasury shares held by Wella.
Now that the acceptance period is closed, only the appropriate regulatory approvals are needed for P&G to acquire the shares and to begin working with Wella management to devise and implement a joint business plan.