Consumer products giant Procter & Gamble (NYSE:PG) boasts an impressive portfolio of some 300 everyday brands, 16 of which produce more than $1 billion in annual sales each. Now, it looks like a few more big names -- Right Guard deodorant, Gillette razors, and Duracell batteries -- will be added to a roster that already includes Pringles, Crest, and Pampers. That is, if regulators give the green light to Procter & Gamble's planned $57 billion acquisition of Gillette (NYSE:G).

The deal has the blessing of Gillette's single largest shareholder, Warren Buffett's Berkshire Hathaway (NYSE:BRKa). Buffett referred to the arrangement as a "dream deal" and indicated his intention to pick up another 6.4 million shares as the ink dries to give Berkshire Hathaway an even 100-million-share stake. (I'm the same way, always trying to keep my stock positions in even 100-million-share increments.) The proposed merger garnered all the headlines this morning, overshadowing Procter & Gamble's other news -- some pretty solid second-quarter results.

Earnings came in ahead of expectations, climbing 12% to $2.04 billion, on sales that rose 9% to $14.45 billion. Like rival Kimberly-Clark (NYSE:KMB), competitive pressures have kept pricing in check, making volume growth essential. Fortunately, unit volume improved 7% during the quarter; pricing had a negligible impact on sales. Despite rising commodity costs that often chip away at margins, Procter & Gamble's cost reduction programs helped gross margins expand by 30 basis points to 52.5%.

Each of the company's business segments delivered top-line growth, ranging from 5% in snacks and coffee to double-digit gains in household care, baby and family care, and beauty care. In the oral care market, where Procter & Gamble's Crest toothpaste and whitening products compete fiercely with Colgate-Palmolive's (NYSE:CL) Colgate line, Crest picked up more than a full point in domestic market share -- not a bad 50th birthday present.

With strong growth at the year's midway point (most of it organic), management has decided to lift its second-half outlook and is now forecasting full-year per-share earnings of $2.61 to $2.64. Assuming the merger is completed as planned, the new entity will be a consumer products juggernaut, with a commanding market share lead in a number of categories and $60 billion in annual sales. The larger company would not only pressure rivals, but also have greater clout and more leverage with retailers like Wal-Mart (NYSE:WMT). Procter & Gamble estimates the present value of cost savings and revenue synergies from the deal at $14 billion to $16 billion.

Throw in an expected $18 billion to $22 billion in stock buybacks over the next 18 months (to mitigate the dilutive impact of shares issued for the merger) and a healthy dividend that has been steadily rising, and Procter & Gamble looks poised to prosper.

Fool contributor Nathan Slaughter owns none of the companies mentioned.