NEW YORK - Warren Buffett's Berkshire Hathaway Inc said on Thursday it would buy Procter and Gamble Co's Duracell battery in a multi-billion dollar deal.

Berkshire Hathaway announced it will use about $4.7 billion in Procter and Gamble stock for the purchase.

Offsetting some of those costs, Procter and Gamble will contribute about $1.7 billion to Duracell before the deal closes.

"I have always been impressed by Duracell, as a consumer and as a long-term investor in Procter and Gamble and Gillette," Buffett said in a statement.

The holding had made Buffet the fifth-largest shareholder in Procter and Gamble.

Procter and Gamble said it is splitting off the Duracell business as part of a major slimming. It had bought Duracell back in 2005 as part of its $57 billion acquisition of Gillette.

Chief Executive Officer A.G. Lafley is streamlining the Cincinnati-based Procter and Gamble by shedding slow-growing brands and focusing on about 80 businesses that generate most of its profit and revenue. Tide laundry detergent and Pampers diapers are among its better-known products, said Reuters.

Berkshire Hathaway, a conglomerate that owns insurance, railroad, retailers and other businesses, said it expects the deal to close by the end of the second half of next year.

Berkshire Hathaway is one of Procter and Gamble's top investors, owning 52.8 million in shares, or just under 2% of the total Procter and Gamble stock outstanding, according to Morningstar data.

Procter and Gamble has sold at least 10 businesses this year, according to Standard and Poor's Capital IQ, including the Iams pet food brand for $2.9 billion.

Thursday's transaction is the biggest-ever divestiture by the company, surpassing its $3.7 billion sale of Folgers coffee to J.M. Smucker in 2008, according to Capital IQ.

Author and investor Jeff Matthews, who wrote "Warren Buffett's Successor: Who It Is and Why It Matters," said the deal is a tax-efficient way for Berkshire to sell its Procter and Gamble stock and avoid capital gains taxes. Still, he's not a big fan of Duracell because of the overall shift to rechargeable batteries.

"I'd rather have the Procter and Gamble shares," Matthews said. "I think Procter and Gamble will get more valuable over time, and Duracell will get less valuable."