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Coty nears deal to buy P&G businesses for about $12 billion - source

Published 16/06/2015, 01:39
© Reuters. A trader works at the trading post that trades Coty Inc. on the floor of the New York Stock Exchange
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(Reuters) - U.S. cosmetics group Coty (N:COTY) has won auctions to acquire three businesses from Procter & Gamble Co (N:PG) for as much as $12 billion (£7.7 billion), a source familiar with the matter told Reuters.

Reuters reported last week that Henkel & Co KGaA AG (DE:HNKG_p) and Coty, both of which have personal care and cosmetics businesses, made binding offers to buy separate parts of P&G's beauty businesses.

P&G, the world's largest household products maker, has been looking to sell several assets it considers non-core as part of its cost-cutting strategy.

Coty, which has a market value of $9.39 billion and makes perfume for fashion brands Calvin Klein and Marc Jacobs and owns nail polish brand OPI and Rimmel mascara, has been looking to expand its products portfolio.

Coty outbid other potential buyers vying for P&G's hair-care, fragrant and cosmetics businesses, the source said, asking not to be identified because the matter is not public.

The source cautioned that the deal, had not yet been finalised.

The deal was first reported by the New York Post.

© Reuters. A trader works at the trading post that trades Coty Inc. on the floor of the New York Stock Exchange

Coty refused to comment when contacted by Reuters. P&G was not immediately available for comment.

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