Tue. Aug 20th, 2019

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Natura Buys Avon.

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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.

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