Brazilian makeup brand Natura Cosmeticos agreed to buy Avon Products (NYSE:AVP), according to two media reports early on Wednesday.
Natura will buy Avon in an all-stock deal that values the U.S. group at more than $2 billion, the Financial Times reported.
Reuters reported last week that Natura was close to completing the deal to buy Avon, which has a market capitalization of $1.42 billion.
The boards of the companies have approved the deal, which has been in the works for several months, The Wall Street Journal said, but did not provide a deal value.
Natura will end up owning about 76% of the combined group, while the rest will be owned by Avon shareholders, FT said, adding that the deal is set to be announced on Wednesday.
Earlier this month, Avon announced the launch of a new mobile app to support millions of micro-entrepreneurs to manage their businesses on the go. 'Avon On' rolled out to 17 markets worldwide after successful trials in the U K.
The launch marks the next step in Avon's digital transformation, opening up access to the brand with high-tech and high-touch solutions. This first wave roll-out includes Mexico, Russia, and Philippines, with a further 25 markets from across Europe, Latin America, and Africa launching the app from July 2019.
Shares in Avon heightened 46 cents, or 14.4%, Wednesday to $3.66
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