stockmarket

Brazil's Natura and Avon confirm deal talks


© Reuters. The Avon Products headquarters is seen in midtown Manhattan area of New York

By Tatiana Bautzer and Jaslein Mahil

(Reuters) – Brazilian cosmetics maker Natura Cosmeticos SA and beauty products firm Avon Products Inc (NYSE:) on Friday said that they were in deal talks but offered no details.

One source with knowledge of the matter said that Avon and Natura have been considering a deal that would put Avon back together three years after the split up of its businesses.

In the discussions, that have been ongoing for some months, Natura would buy Avon’s now private North American business, in addition to the London-headquartered publicly traded Avon, the source added, asking for anonymity to discuss private talks.

In a statement https://reut.rs/2YeSRz4 on Friday, Avon confirmed preliminary discussions with Natura regarding a potential deal, but gave no further details. In a securities filing earlier on Friday, Natura also said the two were in “discussions,” without elaborating further.

Goldman Sachs & Co (NYSE:) is working with Avon and UBS AG is representing Natura in the talks, the source said. Goldman and UBS did not immediately comment.

Natura shares closed down 7.8 percent on the Sao Paulo stock exchange, at 41.5 reais. Avon shares closed up 10 percent in New York.

Avon sold a majority stake in its underperforming North American business to private equity firm Cerberus Capital in 2015, while retaining a roughly 20 percent interest.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

Leave a Reply