P&G said it expects to record a one-time gain of anywhere from $5 billion to $7 billion on the transaction, which includes its hair color brands, retail cosmetics and fine fragrance businesses.
While the final form of the deal has not yet been confirmed, P&G said it aimed to do a "Reverse Morris Trust," which involves both spinning off an asset and simultaneous merging it with something else.
The deal is expected to close in the second half of calendar 2016. P&G shares rose 1.2 percent in premarket trading on the news.
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