I read and posted on this merger in the past, it was probably kinda boring so didnt get much replies. But you did post some great insight.For the sake of brevity, I didn't quote your entire post, but yes, I believe your theory is correct. I also believe this should be reviewed, verified, and included in the Wiki. Nice work, sir!
I retained your quote of the interesting wording concerning the "purchase" or "merger." In reality, it was about the same as if a man takes your wallet and car keys at gunpoint and you call it a gift instead of a robbery.
The "purchase" was the only way to settle a patent infringement lawsuit initiated by Henry Gaisman, the owner of AutoStrop and Probak. At the end of the day, Gaisman owned it all and cleaned house. The Gillette name was stronger, with Gillette having the lion's share of the blade market, so it remained as the successor company with AS and Probak as subsidiaries.
Interesting too is that it was not only about razor design or the shape of the blade holes, but also involved the processes used to manufacture and sharpen the blades themselves. Gaisman tried to persuade Gillette to buy him out several times, and there was speculation that both companies had "inside men" working for the other.
One of the greatest ironies is that even to this day, decades after the takeover and King C. Gillette's death in 1932, Gillette's picture still appears on razor blade packages!