Brazil's Natura set to buy Body Shop in 1b euro deal

London

NATURA Cosmeticos SA entered exclusive talks to acquire British makeup seller Body Shop from L'Oreal SA, with an offer that values the UK chain at one billion euros (S$1.5 billion).

An acquisition by Natura would represent a major expansion for the Brazilian cosmetics company, which originated as a direct-sales business like Mary Kay or Avon and expanded its retail operation with the US$70 million purchase of Australia's Aesop in 2013. The deal would give Natura new sales channels and more exposure to developed markets, though Body Shop is in "great need of a turnaround" and will require a lot of work, said Giovana Scottini, an analyst at Eleven Financial Research.