Mars buys P&G's pet food brands in $2.9bn deal
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Mars has paid $2.9bn (£1.7bn) to acquire the pet food brands Eukanuba, IAMS and Natura from consumer conglomerate Procter & Gamble.
The deal will add the trio of brands to Mars’ existing pet food business, which already includes Whiskas and Sheba cat food and Pedigree.
Mars will buy the rights to the brands in North America, Latin America and other selected countries excluding Europe. These markets account for 80% of Procter & Gamble's global pet food sales. Procter & Gamble said that it could sell its European pet care business to different buyers. The company said it "is developing alternate plans to sell its Pet Care business in these markets." Procter & Gamble, like many of its rival consumer goods goliaths, is refocusing on core business lines in a move to cut $10bn of costs in five years.
Mr AG Lafley, the chairman, president and chief executive of P&G, said: “Exiting pet care is an important step in our strategy to focus P&G’s portfolio on the core businesses where we can create the most value for consumers and shareowners.
"The transaction creates value for P&G shareowners, and we are confident that the business will thrive at Mars, a leading company in pet care.”
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