Natura confirmed this Friday through a statement to its shareholders that it has been in discussions with Avon Products, Inc. – Avon business in North America, now a closely held company – regarding potential deals involving both companies.

The signing of the statement is the Financial and Investor Relations Officer Natura, José Antonio de Almeida Filippo. The company says however, that it does not intend to make additional comments at this time and will communicate new relevant information.

The signing of the statement is the Financial and Investor Relations Officer Natura, José Antonio de Almeida Filippo. The company says however, that it does not intend to make additional comments at this time and will communicate new relevant information.

For Natura, the acquisition would mean less internal competition in direct sales, where Avon is its largest competitor, potential growth in Latin America and gaining scale in distribution channels.

Comments from JP Morgan analysts disclosed in the international press point to initial difficulties if the deal is confirmed, as Natura further consolidates last year’s purchase of The Body Shop, “with chances of further dilution of revenue per share.” According to analysts, Natura’s eco-friendly positioning would be at risk with Avon’s entry and the required synergies could take a relevant time.