The deal also includes $850m of debt which will be parked in a special company created for the deal to minimise tax. P&G shareholders will end up with 57 per cent of the enlarged Diamond Foods which also makes Kettle Brand potato crisps.
P&G is the biggest household products company in the world, and the biggest advertiser, but it has been looking to exit foods by selling its last remaining food brand for some time. In 2008 it sold its Folgers coffee business, the biggest coffee business in the US, to jellies, jams and peanut butter maker JM Smucker for $2.95bn.
This sale was also executed through a specially-formed company.