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By
AFP
Published
Jul 26, 2017
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Brazil regulators greenlight Natura buying The Body Shop

By
AFP
Published
Jul 26, 2017

Brazilian regulators have authorized the $1.1 billion purchase of British chain The Body Shop by Brazil's Natura, officials said Tuesday.


Photo : The Body Shop - Photo: The Body Shop


L'Oreal, the owner of The Body Shop, announced last month it was in exclusive negotiations with Natura to buy the chain.

Natura plans to use the purchase to create a global giant specialized in "green" cosmetics.

The deal, struck on June 26, was conditional on approval from Brazilian and US regulators.

In its statement published in the official government gazette, Brazil's Administrative Council for Economic Defense noted that each group had its own distribution channels in the country, and worked with raw products from different regions -- Natura from Brazil, and The Body Shop from Asian suppliers.

That alleviated competition issues in Brazil, especially as the combined market share of the two brands was less than 20 percent.

Natura shares in Sao Paulo retreated 3.05 percent.

Launched in 1969 and listed in 2004, Natura is Brazil's biggest cosmetic brand, with revenues of $2.5 billion last year.

The Body Shop, founded in 1976 as a brand mindful of the environment, was bought by French giant L'Oreal in 2006 for $1.1 billion. 

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