Brazilian cosmetics company Natura is moving closer to to acquiring Avon Products in an all-stock deal. Natura would become the majority shareholder in the 133-year old company. Shares of both companies rose in mid-May with the news. The Financial Times has reported that the deal values Avon at more than $2 billion, and that Natura would own 76 percent of the combined group. Avon has roughly 1 million consultants in Brazil. The deal will reportedly not involve cash payments.
Natura & Co is adding a “bankarization” element to the list of perks it offers its beauty consultants.
The Wall Street Journal reported that Natura & Co and Avon are discussing a possible acquisition. After the news was announced on WSJ, Bloomberg, and many other websites, the stock price for Avon Products Inc. increased by 13 percent. The possible merger would potentially give more than 1 million Brazilian beauty consultants access to Avon products.