Brazil’s antitrust authority, the General Superintendence of the Administrative Council for Economic Defense (CADE), has given its approval for the sale of Australian brand Aesop to French multinational L’Oréal. The decision, which was made by CADE superintendent Alexandre Barreto de Souza, has been published in the Official Gazette and will be effective in 15 days unless challenged by any member of the antitrust authority or a competitor within that timeframe.

The sale agreement between Natura and L’Oréal was announced in April last year. Natura, a Brazilian cosmetics manufacturer, agreed to sell the entire share capital of Aesop to L’Oréal’s Australian subsidiary for a sum of $2.525 billion (approximately €2.323 billion).

CADE has determined that the transfer of Aesop to L’Oréal would not negatively impact competition in Brazil. This is mainly because Aesop operates by exclusively selling its products directly to consumers in the country through online stores. Furthermore, Aesop is not a major player in the Brazilian beauty market.

For the past ten years, Aesop has been owned by Natura Brazil Pty, a company within the Brazilian group Natura Cosméticos. L’Oréal plans to leverage this acquisition to expand Aesop’s growth potential.

On the other hand, Natura sees the sale as an opportunity to reduce its debt and focus on expanding its own brand in its priority market, Latin America. The company also plans to concentrate on its strategy of geographical expansion through its controlled subsidiaries, Avon International and The Body Shop.

With CADE’s approval, the sale of Aesop to L’Oréal can proceed smoothly. This acquisition presents new possibilities for both companies and lays the foundation for further growth and success in the beauty industry.

Links:

1. Natura
2. L’Oréal