Avon rises as Natura confirms possible deal

Bloomberg

Avon Products Inc spiked after rival Natura & Co confirmed that it has engaged in talks with Avon about a “potential transaction,” without giving further details.
The confirmation, made in a regulatory filing, comes hours after the Wall Street Journal reported Avon and Natura were in early discussions about a potential sale that could put the cosmetics maker and pioneer of direct-sales into Brazilian hands.
According to the report, Natura, which bought the Body Shop retail chain in 2017, is considering buying both Avon’s private-equity owned North American business and the London-based publicly traded company, the Journal said, citing an unidentified person familiar with the matter.
“Natura said it will keep its shareholders and the market in general updated on any new material information,” the company said in the filing after confirming it was holding talks “concerning a potential transaction involving both companies.”
Avon shares, which rose after the report first broke, soared as much as 13 percent to $3.15 after its Brazilian rival confirmed that some discussions had taken place. Natura fell as