Natura acquires Avon for US$2b
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The Wall Street Journal reported that The Body Shop parent, Natura Cosmeticos has reached an agreement to buy Avon Products Inc in an all-stock deal worth about US$2 billion. Avon has been under pressure from the rise of online beauty sales, which it was late to embrace, and news of the deal saw its shares surge 9% during regular trading and 15% in aftermarket trading. The combined cosmetics company is expected to have annual gross revenue of around US$10 billion and have locations in 100 countries. Natura said that it expects the combination will allow it to cut costs by about US$150-US$250 million annually.