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L’Oréal to sell Body Shop to Brazil’s Natura in €1bn deal

The Body Shop is to be sole in a €1bn (£877m) understanding to Brazilian cosmetics association Natura, that owns a Aesop brand.

L’Oréal, a owners of a British reliable retailer, is in disdainful talks with Natura and approaching to finalise a understanding this year.

L’Oréal put Body Shop adult for sale in February. At a time it pronounced it had motionless to try all vital options for a 40-year-old sequence to give it a “best opportunities and full ability to continue a development”.

The sale could symbol a finish of an unfortunate 11 years for Sussex-based Body Shop. Founder Dame Anita Roddick sole a business to L’Oréal for £652m in 2006, a pierce seen as a profanation by some unchanging shoppers.

L’Oréal, a world’s largest cosmetics company, is offered adult since decrease has set in during a code once noticed as a smart eco-friendly label. Body Shop’s handling increase dived 38% to €34m in a year to 31 Dec 2016, while sales sank scarcely 5% to €921m. The gait of decrease increasing in a final and pivotal Christmas quarter, shifting by 6.3%.

Natura pronounced a merger would assistance it take a “decisive step towards internationalisation”.

The Body Shop operates in 66 countries and has some-more than 3,000 outlets, 133 of them in Brazil. Its turnover creates it about half a distance of Natura. Together they would have net sales of about R$11.5bn or €3.15bn with 3,200 stores worldwide.

Founded in 1969 in São Paulo by Antônio Luiz Seabra, who stays a company’s biggest shareholder, Natura is a largest Brazilian cosmetics company. In 2014, it became a initial publicly traded association to be approved as a “B corp”, assembly certain standards of amicable and environmental opening and transparency.

“Natura and a Body Shop have always walked in parallel, and currently their paths meet,” pronounced Guilherme Leal, co-chair of Natura’s board. “The complementarity of a general footprints, a tolerable use of biodiversity in a products, a faith in ethics in government and satisfactory family with communities and a high grade of creation consecrate a pillars of a tour on that we are now embarking.”

Jean-Paul Agon, chair and arch executive of L’Oréal, pronounced Natura was “the best new owners we could suppose to maintain a code DNA around naturality and ethics”.

Article source: https://www.theguardian.com/business/2017/jun/09/loreal-body-shop-natura-aesop

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