Natura announced on the 12th, more details about the process in which the newly created holding Natura & Co will now house the current operations of cosmetics and also the operations that will be aggregated after the purchase of North American Avon. This process is expected to cost R $ 349 million, including assessments, publications, legal advice and other advisory services, according to the group’s statement.
“The corporate restructuring is timely for Natura Cosmeticos be detained by Natura & Co, enabling the subsequent integration of Avon’s shareholding base and operations, without resulting in an increase in Natura’s debt ratios,” the company described.
The business combination is expected to give rise to the world’s fourth largest beauty group, with annual revenues in excess of $ 10 billion. The Avon deal – which excludes only Japan and US operations – was originally announced in May this year.
This is another step in the international strategy of the Brazilian company, which bought the Australian Aesop in 2012 and the British The Body Shop four years later. With Avon, the company will be present in different niche markets.
The business combination process within the holding company Natura & Co will be divided into four steps, the first two focusing on the restructuring and integration of Natura Cosmetics, and the last two on Avon’s entry.
In the first step, the controlling shareholders of Natura Cosméticos (owners of a 57.22% stake in the company) will participate in a Natura & Co capital increase with a transfer of their shares and a cash amount to be used for payment by Natura & Co income tax.
In step two, all other Natura Cosméticos shares will be incorporated by Natura & Co at their book value. As a result, Natura Cosméticos will become a wholly owned subsidiary of Natura & Co. The shareholder of Natura Cosméticos will receive one share of Natura & Co for each share held.
According to the statement, in an operation that will consist of three distinct phases, Avon will also be incorporated into Natura & Co.
In the statement, Natura said that companies are unaware of “significant risks” arising from the business combination process. In addition, the company noted that the effectiveness of the integration is conditional on obtaining shareholder approval at meetings, as well as the green light from the Brazilian and foreign antitrust authorities.
Information from the newspaper O Estado de S. Paulo