The $57bn acquisition has been conditionally approved provided the companies divest a variety of overlapping assets ranging from toothbrushes to deodorant, the FTC said in a statement.
"The terms of the Commission's consent order address the product overlaps between these two large companies by restoring competition that would be lost as a result of the merger. As a result, Americans who use these products will be protected from higher prices in the wake of this acquisition," said Susan Creighton of the FTC.
The merger was contitionally approved by the EC in July.
Under the terms of the FTC agreement, Procter & Gamble and Gillette will be required to divest P&G's Crest SpinBrush battery-powered toothbrush business within ten days of receiving EC clearance. Earlier this month, P&G announced an agreement to divest this business to owners of the Arm & Hammer trademark Church & Dwight of Princeton, New Jersey.
Gillette's Rembrandt teeth whitening business must be divested within 90 days of the final FTC order, or approximately February 1, while Gillette's Right Guard men's deodorant business must be divested within 120 days, or approximately March 1.
The company will also make Gillette deodorant brands Soft & Dry and Dry Idea available for purchase to the Right Guard buyer.
"We are excited that we can now move on to the Gillette closing and integration," said P&G chairman AG Lafley. "The addition of Gillette will broaden our line-up to 22 brands with over a billion dollars in sales and will take us into new product areas."
"I am confident that the merger will succeed. We are both industry leaders on our own, and we will be even stronger and even better together," he added.