// Brazilian company Natura Cosméticos is expected to announce takeover of Avon by tomorrow
// The deal is valued at £1.58bn
// It will give Natura control over three-quarters of the combined group
The Body Shop’s parent company Natura Cosméticos is expected to acquire cosmetics brand and direct-selling retailer Avon in a £1.58 billion deal.
The São Paulo-based Natura Cosméticos is forecast to announce its takeover of Avon as early as tomorrow, according to the Financial Times.
The deal will give the firm control over three-quarters of Avon, with remaining shares handed to shareholders.
Avon, which is listed in New York with a market value of about $1.4 billion (£1.1 billion), has its headquarters in London.
The news follows Avon’s announcement of scrapping 10 per cent of its workforce – 2300 jobs – as it aims to cut down on costs with the goal of saving almost $100 million (£78.9 million).
The cosmetics brand has had trouble in the past in keeping up with shifts in consumer behaviours.
It has also lost market share to rivals such as LVMH-owned Sephora, Estée Lauder and L’Oréal.
Natura, which is aiming to expand globally, bought skin & haircare retailer Aesop in 2016, and then went on to buy British retailer The Body Shop from L’Oréal in a €1 billion (£877 million) deal in 2017.