SUMMARY
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SAO PAULO, Brazil – Brazilian cosmetics giant Natura said Wednesday, May 22, that it is buying Avon in an all-share transaction that will form the world’s 4th largest beauty products company.
The combined company, Natural Holding SA, is expected to have annual gross revenues of more than $10 billion and be present in 100 countries, Avon and Natura said in a joint statement.
Natura shareholders will own approximately 76% of the combined company while Avon common shareholders will own approximately 24%.
Based on the closing prices on Tuesday, May 21, the transaction values Avon at $3.7 billion “and the combined group would have an enterprise value of approximately $11 billion,” the statement read.
The board of the combined company will have 13 members, 3 of which will be chosen by Avon.
News that talks were underway bolstered stock prices of both companies.
Natura shares jumped 9.43% on the Sao Paulo stock exchange, while Avon shares were up 9.06% to $3.49 in New York trading.
In 2017 Natura bought the British cosmetics company The Body Shop. – Rappler.com
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