With Avon, Natura mira isolated leadership in Brazil and expansion in the U.S.

The negotiations of the purchase of Avon by Natura, confirmed by the brazilian manufacturer of cosmetics this Friday, 22, will serve two purposes for the brazilian company: open space in the American market, in which it has discreet presence, and reach the leadership isolated from the sector in the Country, where is the first place, but with tight margin in relation to the anglo-Dutch Unilever and the Brazilian Group Apothecary. There is the expectation that the hammer of the acquisition can be beaten in the next few days, says source close to agreement, in operation that includes the American and the brazilian operation. Avon's market value is now about $ $1.3 billion (or R $5 billion). Although it is an internationally known brand and is forming a portfolio in addition to the parent brand – with Australia's Aesop, purchased in 2012, and the British The Body Shop, in 2017, the incorporation of Avon would double the brazilian participation in the global market. According to Euromonitor consulting both Natura as Avon have 1.5% of the cosmetic industry in the world, being the 13th and the 14th in the forces. Here, the Natura 17%, from getting well ahead of their rivals. Buy Avon has been, but it's not a big step to Natura. That's because the American brand has lost a good part of your appeal in recent years. The Euromonitor shows the Avon in a discrete sixth place in the national market. In the past decade, had twice the size by and disputed the lead with Natura. Vultures operation Avon errors have been many in recent years and included logistic problems in different markets and the loss of relevance of the brand with a consumer with more options to choose from. After two exchanges of President – and have refused offer of purchase of Coty for $ $11 billion in 2012 – the Avon of the United States ended up in the hands of Cerberus Fund, known as the "vulture", i.e. specializing in troubled companies. In a report, the Bank said the Plural Avon Brazil has faced a series of setbacks. "The Avon lost part of your appeal with the public and still trying to recover your credibility with sales representatives". The report also States that the purchase of the Avon would represent for the Natura "an entry through the front door" in the USA. The Bank keeps your recommendation of buy for Natura, while believes that Avon will maintain your downward, if the talks do not have a positive outcome. While the Avon lost market, Natura was able to keep the same leadership in a scenario played, which included the accelerated expansion of the Group Apothecary. Both the Natura as Apothecary expanded your brand portfolio. The market leader bought The Body Shop and the Aesop. Already the paranaense your base with reinforced manufacturer Who Said, Berenice?, Vult! and Eudora. Although crumbling, Avon can serve as popular line for Natura, in addition to serving as a platform for the launch of the "brand" on American soil. According to a source involved in the deal, the talks between the companies were resumed on Tuesday. All trading is being made in the US and involves investment banks like Goldman Sachs, Morgan Stanley and UBS. In the face of discouragement of the market with the Avon, the cosmetics company had sharply higher yesterday, of 10.6%, closing just above $ $3. Meanwhile, the roles of Natura suffered a fall in the stock market, with drop of 7.33%, to R $41.70. BTG analysts estimated the concern with the growing debt of nature in a billion dollar acquisition as Avon. Wanted, Avon, Goldman Sachs and Morgan Stanley refused to comment. UBS did not return the contact of the report until the closure of this edition. /COLABOROU BETH MOREIRA