Brazil's Natura to buy Avon Products in stock deal - reports

Credit: REUTERS/BRENDAN MCDERMID

Brazilian makeup brand Natura Cosmeticos SA agreed to buy Avon Products Inc, according to two media reports early on Wednesday.

May 22 (Reuters) - Brazilian makeup brand Natura Cosmeticos SA NATU3.SA agreed to buy Avon Products Inc AVP.N, according to two media reports early on Wednesday.

Natura will buy Avon in an all-stock deal that values the U.S. group at more than $2 billion, the Financial Times reported, citing people familiar with the matter.

Reuters reported last week that Natura was close to completing the deal to buy Avon. The U.S. company has a market capitalization of $1.42 billion, as per Refinitiv data.

The boards of the companies have approved the deal, which has been in the works for several months, the Wall Street Journal said, but did not provide a deal value.

Natura will end up owning about 76% of the combined group, while the rest will be owned by Avon shareholders, FT said, adding that the deal is set to be announced on Wednesday.

Natura and Avon did not immediately respond to requests for comments.

(Reporting by Bhargav Acharya in Bengaluru; editing by Gopakumar Warrier)

((Bhargav.Acharya@thomsonreuters.com; Outside U.S. +918067491590 ; Reuters Messaging: Bhargav.Acharya.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More