Brussels gives green light for Avon sale to Natura
The European Commission has approved the acquisition of American Avon by Natura after concluding that there will be no competition problems in the European market.
Green light for Natura. The European Commission has approved the acquisition of American Avon by Natura after concluding that there will be no competition problems in the European market. Last May, the Brazilian group sign a deal to acquire Avon for 2 billion dollars.
Brussels acknowledged in a statement that corporate activities match in various categories of beauty and personal care products. However, it noted that the acquisition will generate a “moderate” increase in its market share.
Natura controls 76% of the new company and Avon the remaining 24%
The owner of Avon shares will be a new company called Natura Holdings. Its creation happens at the same time as Natura’s change of name, called Natura&Co. The current shareholders of Natura control 76% of the new company, while the remaining 24% will be in the hands of the current owners of the American group.
The purchase of Avon is the second biggest corporate operation that the Brazilian company has performed. In 2017, Natura signed the purchase of The Body Shop from L’Oréal in a deal valued at 1.1 billion dollars. In 2018, Natura’s sales grew by 8.4%, up to 2,915 million reais (734.2 million dollars). Avon, meanwhile, reached sales of 5.2 million dollars, down 5.7% year-on-year.
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