Brazil's Natura Cosmeticos has agreed to purchase rival Avon Products Inc for $2 billion. The all-stock deal will position the company as a growing powerhouse in the booming cosmetics and skincare sector. The transaction is valued at $3.7 billion, including the debt. "Once the deal is finalised, 76% of the shares will be owned by Natura shareholders, with the remaining 34% held by Avon shareholders. The new company's shares will trade in New York and Sao Paulo. In New York trading, Avon shares jumped as much as 14% to $3.98. In comparison, Natura shares fell to 6.2% to 57.67 reais in Sao Paulo, the biggest decline Brazil has ever witnessed on the benchmark stock index," commented Michael Walker, Director of Corporate Equities at Tochigi Ontario Holdings . The deal solidifies the biggest direct sellers in the global cosmetics industry. Avon was founded in the US in 1886. The business created an innovative sales model by making fans of the brand saleswomen...
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