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CINCINNATI - Procter & Gamble announced today that its domination and profit transfer agreement with Wella AG has been registered with the commercial register in Darmstadt, Germany.
Upon this registration, the domination and profit transfer agreement became effective and is valid for Wella's current shortened reporting period (Jan 1 to June 30). The agreement was approved by Wella shareholders during the company's June 8 annual shareholder meeting.
P&G now controls Wella AG as defined under Secs. 291 et seq. of the German Stock Corporation Act. Under the agreement P&G is entitled to give instructions to the management board of Wella AG, and annual profits of Wella AG will be transferred to P&G.
The domination and profit transfer agreement will strengthen collaboration efforts between Wella AG and P&G. The Wella management board believes the agreement will ease operational decision-making, improving Wella's ability to respond more effectively to future market demands. P&G anticipates that the agreement will create greater efficiency in achieving previously stated business plans and collaboration synergies.