(Reuters) - Brazilian cosmetics maker Natura Cosmeticos SA and beauty products firm Avon Products Inc on Friday said that they were in deal talks but offered no details.
One source with knowledge of the matter said that Avon and Natura have been considering a deal that would put Avon back together three years after the split up of its businesses.
In the discussions, that have been ongoing for some months, Natura would buy Avon’s now private North American business, in addition to the London-headquartered publicly traded Avon, the source added, asking for anonymity to discuss private talks.
In a statement reut.rs/2YeSRz4 on Friday, Avon confirmed preliminary discussions with Natura regarding a potential deal, but gave no further details. In a securities filing earlier on Friday, Natura also said the two were in "discussions," without elaborating further.
Goldman Sachs & Co is working with Avon and UBS AG is representing Natura in the talks, the source said. Goldman and UBS did not immediately comment.
Natura shares closed down 7.8 percent on the Sao Paulo stock exchange, at 41.5 reais. Avon shares closed up 10 percent in New York.
Avon sold a majority stake in its underperforming North American business to private equity firm Cerberus Capital in 2015, while retaining a roughly 20 percent interest.
Reporting by Tatiana Bautzer in Sao Paulo and Jaslein Mahil in Bengaluru; additional reporting by John Benny in Bengaluru; Editing by Tom Brown and Rosalba O'Brien