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FILE PHOTO: Avon Products head office is located in downtown Manhattan, NY, June 21, 2013. REUTERS / Brendan McDermid
(Reuters) – Brazilian cosmetics manufacturers Natura Cosmeticos SA and beauty products Avon Products Inc. announced Friday that they were in talks, but gave no details.
A knowledgeable source said Avon and Natura were considering an agreement that would allow Avon to rebuild itself three years after the split.
In discussions that have been going on for several months, Natura would buy Avon's now private business in North America, in addition to Avon, headquartered in London, was listed on the stock market, the source added. requesting anonymity to discuss private conversations.
In a statement on Friday, April 26, Avon confirmed preliminary discussions with Natura regarding a possible deal, but gave no further details. In a securities deposit earlier Friday, Natura also said the two were in "talks" without further details.
Goldman Sachs & Co is working with Avon and UBS AG is representing Natura in discussions, the source said. Goldman and UBS did not comment immediately.
Natura shares closed down 7.8% at the Sao Paulo stock exchange, at 41.5 reais. Avon shares closed up 10% in New York.
Avon sold the majority of its underperforming North American business to private equity firm Cerberus Capital in 2015, while retaining a stake of approximately 20%.
Report by Tatiana Bautzer in Sao Paulo and Jaslein Mahil in Bengaluru; additional report by John Benny to Bengaluru; Edited by Tom Brown and Rosalba O & # 39; Brien
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