Brazil authorities give Natura’s Avon acquisition green light

By Simon Pitman contact

- Last updated on GMT

Brazil authorities give Natura’s Avon acquisition green light

Related tags: Avon, Natura, Latin america

Competition authorities have given their approval to Natura & Co’s acquisition of Avon Products Inc, citing no restrictions for the deal.

BNatura executives say that this was the biggest obstacle to overcome of the steps necessary to secure and complete the transaction, stating that the other conditions still yet to be fulfilled include anti-trust approval in other specific areas.

The deal was first announced in May of this year, and was lauded as one that would turn Natura into the first Brazil-owned global beauty powerhouse, putting it the rankings with Unilever, P& G, and the world’s biggest cosmetics company, L’Oreal.

Creating the fourth biggest beauty company

Indeed, experts estimate that the combined revenues of the new business will make Natura the fourth biggest player in the world, thanks to the recent addition of other global beauty businesses, including The Body Shop and Aesop.

We are very pleased to have received approval without restrictions from Brazil’s competition authority,” ​said Roberto Marques, Executive Chairman of Natura &Co.

“The process is advancing according to our expectations, and we continue to expect a closing of the transaction by the first quarter of 2020.”

Expanding footprint in Latin America

To meet legal obligations, the decision was published in the Brazil Official Gazette, and next week will be the legal deadline to make the decision final.

Once the deal is finalized, Natura’s footprint will be expanded worldwide, thanks to the expanse of the Avon Products business, but it is in the Latin America market where the most benefits will be seen.

Currently Avon Products biggest market is Brazil, which coincides with Natura’s biggest interest and should enable the two businesses to forge significant synergies and cost savings.

Beyond that market, Mexico should also prove to be an important new market once the deal is secured, because it will give Natura a bigger platform in the highly competitive direct sales category in the country.

Related news

Related products

show more

The DSM Imp’Act Card™

The DSM Imp’Act Card™

DSM Nutritional Products | 22-Jul-2020 | Product Presentation

At DSM, we are committed to make all our products as sustainable as possible throughout the value chain. One way we are working towards this goal is with...

Multifunctionals for modern product protection

Multifunctionals for modern product protection

Symrise | 15-Jul-2020 | Technical / White Paper

The ‘clean’ movement is more and more of interest to consumers looking for enjoyable but responsible experience. Multifunctionals have a key role to play...

Liquid crystals, the stars of emulsion

Liquid crystals, the stars of emulsion

SEPPIC | 15-Jun-2020 | Technical / White Paper

Montanov™ 202 is a natural O/W emulsifier allowing to formulate ultra white thick lotions to creams with a light, soft skin-feel and a matte finish on...

Related suppliers

Follow us

Products

View more

Webinars

Indie Pioneers Podcast

Indie Pioneers Podcast