The beauty giant outbidded rivals
Beauty giant Coty could soon see its portfolio boosted by P&G brands including Gucci, Dolce & Gabbana and Hugo Boss fragrances, Wella and Clairol hair care, and Max Factor and Cover Girl make-up, according to Reuters.
P&G’s beauty businesses have been valued at around $12bn (£7.7bn). If Coty does succeed in a takeover, this would rank as the largest global consumer products deal this year and the seventh largest consumer products sector deal on record, according to MarketWatch. The deal would also transform Coty into one of the most influential beauty conglomerates in the market.
The P&G brands Coty bid for include Gucci, Max Factor and Clairol
As a result of the news that Coty outbid its rivals Henkel, KKR & Co and Warburg Pincus over the weekend, as reported by the New York Post, the company’s shares spiked 19.31%, climbing to $31.02.
In media reports Coty was said to have beaten all competitors in an auction over the weekend, outbidding rival companies that also had their eye on P&G’s brands. Coty’s main competitors for P&G’s hair care business were thought to be Henkel and KKR & Co, while Warburg Pincus was reported to be vying for P&G’s fragrance business. All parties submitted bids.
Sources warned the New York Post that outcomes could still change as deals had not yet been finalised.