P&G;’s Purchase of Clairol Is Approved

Procter & Gamble Co.’s planned $4.95-billion purchase of the Clairol hair-care business from Bristol-Myers Squibb Co. was approved by the U.S. government, clearing the way for completion of the acquisition within a few weeks.

The Justice Department’s consent was the last regulatory requirement, said a spokeswoman for Cincinnati-based Procter & Gamble. The purchase will reduce earnings by about 2 cents a share in the fiscal year ending June 30, 2002, and add to earnings in the following year, the company said.

The purchase will be the largest in Procter & Gamble’s 164-year history, adding $1.6billion in annual sales through brands such as Nice ‘n Easy and Miss Clairol hair color. Shares of Procter & Gamble, the largest U.S. maker of household products, rose 11 cents to $78.11 on the New York Stock Exchange.