L'Oreal, the owner of The Body Shop, announced last month it was in exclusive negotiations with Brazilian manufacturer and marketer of beauty products company, Natura Cosmetics.  

Brazilian regulators have authorized to purchase 1.1 billion US dollars of the British chain to create a global giant specialized in "green" cosmetics.

On June 26, the deal stuck between the two countries was still under approval.  In the official government newsletter published by Brazil's Administrative Council for Economic Defense, they noted that each group had its own distribution channels in the country, and worked with raw products from different regions. Natura would plan to work with Brazil, while The Body Shop would plan to work with Asian suppliers.

This plan eased competition between the two groups, especially as the combined market share of the two brands was less than 20%.

Natura Cosmetics is Brazil's biggest cosmetic brand, has topped the chats with revenues of 2.5 billion US dollars last year.  However, since then the brands' shares dropped in Sao Paulo by 3.05%.

Where as, The Body Shop, a brand mindful of the environment, was bought by French giant L'Oreal for 1.1 billion US dollars in 2006. Since then, sales have suffered by 5% leading the company to have lost an estimate of 54 million US dollars. 

(Source: AFP)