Said to have won auctions over weekend
Coty has beaten off fierce competition to win auctions for three of P&G’s businesses, according to sources speaking to Reuters.
The US beauty giant outbid rivals to buy the businesses, which are rumoured – although not confirmed – to include hair care brand Wella, and make-up brands Cover Girl and Max Factor, for as much as $12bn (£7.7bn).
Coty is said to have outbid other potential suitors for the acquisitions over the weekend, sources reportedly told the New York Post, when P&G began alerting the losing bidders of the news. The sources were said to have warned that outcomes could still change as deals had not been finalised.
Market analysts Euromonitor said that by acquiring P&G’s beauty businesses, Coty would become the number two company in colour cosmetics and number one in fragrances globally based on a ranking of company shares.
At the end of last week, Coty and Henkel were singled out to be in prime position for an acquisition (click here for more). A number of private equity firms including KKR & Co and Warburg Pincus were also said to have submitted bids.
Coty currently owns a number of colour brands including OPI and Rimmel. It also creates fragrances for fashion brands Marc Jacobs, Chloe and Calvin Klein, among others.