Brazil’s Natura reached an agreement to buy rival Avon Products via a share swap. This creates one of the world’s largest beauty company with a focus on direct sales.
Natura will hold 76% of the business with over $10 billion in revenue. This is according to a statement from Brazilian cosmetics firm.
Brazil is Avon’s biggest market, therefore making up about a quarter of sales. Its business there has suffered in recent years due to weak economy and stiff competition from Natura.
On that note, the company has agreed to a takeover offer of Natura share. That values Avon’s equity at around $2 billion, representing a 29% premium over its closing share price.