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Warren Buffett's Berkshire Hathaway stocks up on batteries ahead of Christmas

Procter & Gamble to trade Duracell unit for P&G stock that Berkshire Hathaway owns.

By Scott Smith
Warren Buffett's Berkshire Hathaway stocks up on batteries ahead of Christmas
Berkshire Hathaway Chairman Warren E. Buffett and Business Wire CEO Cathy Baron Tamraz ring the opening bell at the New York Stock Exchange after the opening bell on Wall Street In New York City on September 30, 2011. UPI/John Angelillo | License Photo

OMAHA, Nov. 14 (UPI) -- Warren Buffett's Berkshire Hathaway has made a big purchase ahead of Christmas, batteries included.

In a structured transaction that will avoid taxes, Berkshire Hathaway will purchase Procter & Gamble's Duracell unit for $4.7 billion in P&G stock, while P&G will inject $1.8 billion in cash to recapitalize the battery maker.

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Cathy Seifert, an S&P Capital IQ analyst, told Marketwatch that "Buffett is still buying an entity that has additional room for improvement, and he is buying it at a discount."

"I have always been impressed with Duracell, as a consumer and a a long-term investor in P&G and Gillette," Buffett said in a release via his company's own public relations newswire, Business Wire.

Berkshire Hathaway owns a diverse range of businesses, including such consumer names as Dairy Queen, Geico, Helberg Diamonds and H.J. Heinz Co. The company also owns newspapers and a wide range of industrial units.

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Berkshire Hathaway stock was up slightly in early Friday trading.

The deal for Duracell is expected to close in late 2015.

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