Natura beauty company confirmed that it had acquired American beauty company Avon through a stock acquisition. The deal originated through its Brazilian holding company, Natura & Co.
Together the two will become the fourth largest beauty company in the world in terms of revenue, estimated at US$10 billion, a press release reported.
Natura & Co. shareholders will keep 76% of the new company, while Avon shareholders will have 24%. The new company will be valued at US$11 billion (R$44 billion).
This Wednesday (22) the Financial Times reported the value of the transaction at US$2 billion. The value of the negotiations was not released.
With this deal, the companies will have annual revenues greater than US$10 billion (R$ 40,2 billion), more than 40,000 employees, and a presence in more than 100 companies.
During the day, the value of the two companiesâ share rose and fell. Avon close this Wednesday with a US$ 1,6 billion (R$ 6,4 billion) market value. Natura is valued at R$ 26,7 billion (US$ 6.7 billion).
The Brazilian company hopes that the deal will result in savings of US$ 150 million (R$ 603 million) to US$ 250 million (R$ 1 billion) per year.
Translated by Kiratiana Freelon