The Brazilian cosmetics manufacturer Natura Cosmeticos SA and cosmetic firm Avon Products Inc at the end of this week said they are negotiating a deal, but provided no details.
However, the negotiation process is an indicator of possible major changes on the world market, as both a manufacturer of cosmetics are a serious industry players.
One of the sources, who wished to remain anonymous, but at the same time are more aware in this situation, said that Avon and Natura are considering a deal that should join the Avon business three years after the separation of its businesses in connection with the withdrawal of activities from North America. Investment Bank Goldman Sachs & Co works with Avon, and the largest Swiss financial holding UBS AG is Natura at the talks, said a source. Goldman and UBS are also not comment on the results of the current negotiations.
Recall that in 2015, Avon has sold a controlling stake in its inefficient business in the United States and Canada, private equity firm Cerberus Capital, retaining approximately 20-percent share. Some of the shareholders did not agree with such decision of the Board, in addition, Avon had some difficulties in the UK related to taxation.
During the talks, which lasted for several months, Natura announced its intention to buy a private North American business, Avon, in addition to publicly traded shares that part of Avon, the headquarters of which is located in London.
This week, Natura shares closed down 7.8 % on the stock exchange of são Paulo, the cost is estimated at up to 41.5 reais (about $ 11). Avon shares closed with a growth of 10% in new York.
In a statement on Friday, the leadership Avon has confirmed preliminary talks with Natura regarding a potential transaction, but did not provide any details. Natura representatives said they would inform their shareholders and the market in General of any new material information, says the company, which is a clear indication that she is in talks “regarding a potential transaction involving the two companies.”
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17 April, Moscow will host the conference of the company Mesopharm “a Scientific approach to aesthetic medicine. Current issues and trends in the industry.”