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P&G’s Slimming Down Continues

Procter & Gamble (PG) rose 2% on Monday, March 16, after reports surfaced in the financial media that the consumer products giant may continue to shed unwanted businesses. Investors likely remember P&G’s deal last year to sell its Duracell battery business to Warren Buffett’s Berkshire Hathaway (BRK.B) in a $4 billion transaction. More recently, P&G sold off its overseas bleach brands Ace, Magia Blanca and Lavansan Bleach in Latin America, Eastern Europe, the Middle East and Africa.

The latest news is that P&G may divest some of its beauty brands, which include Cover Girl makeup, SKII skin cream and Herbal Essence shampoo, along with fragrances. P&G is also exploring the sale of its Wella hair-care business.

This move is the most recent example of a continuation of P&G’s broader strategies, which is to divest businesses it can’t grow fast enough. As a huge multi-national conglomerate, P&G has dozens of brands, but many of them aren’t growing much anymore, like the battery business. In all, P&G may exit from up to 100 product lines.