Procter & Gamble reported Wednesday that the all-cash deal will provide the company an after-tax gain of between $1.4 billion and $1.5 billion, translating to between 47 cents and 50 cents a share. However, the expected gain is less than the 55 to 65 cents that it would have gained, if the $2.35 billion deal with Diamond Foods had been successful. 

 

Procter & Gamble said in a statement that the acquisition of the Pringles business by Kellogg will enable them to build a global snacks business on the same level as its global cereal business. Diamond Foods said that it does not need to pay a break-up fee for collapse of the deal. However, analysts said that Diamond Foods would most likely have to pay a $60 million fee to P&G.

 

Diamond’s acting CEO said that since the company has had a positive and working relationship with P&G all through the process, the termination of the agreement and release of all liabilities was also done in the same spirit of mutual agreement.