l'oreal seeks more china glow with $840 million bid for skincare firm - face to face peel off facial mask papaya

l\'oreal seeks more china glow with $840 million bid for skincare firm  -  face to face peel off facial mask papaya
PARIS/Hong Kong (Reuters)-L’Oreal SA (OREP. PA)
It has been proposed to acquire magic Control International Co. , Ltd. , a Chinese mask manufacturer (1633. HK)
The move will put the world's largest cosmetics group ahead of the fastest-growing industry in China's $15 billion skincare market.
China is the third largest cosmetics market in the world and the third largest cosmetics market in Paris.
L'Oreal products.
Magic Holdings has the largest market share in the mask market and is expected to grow by more than 35% in the next two years --
The overall skincare market is expanding by more than 27%
According to Euromonitor, a consumer research firm.
Masks have long been part of Chinese beauty etiquette and are a popular way to prevent pollution, especially in big cities.
Demand for them has recently been driven by a steady increase in China's middle-class annual disposal income, especially among more and more consumers known as "urban --
A man squandered to protect his appearance.
The deal marks L'Oreal's biggest acquisition since the 2008 acquisition of Yves Saint Laurent Bolt.
15 billion euros from the French ppt group (PRTP. PA)
Today, Kering, which still has a fashion brand of the same name, is renamed Kering. L’Oreal’s HK$6. 54 billion ($840 million)
Magic Holdings's offer is equivalent to HK $6. 30-per-
Shares will be a small price to expand at such a high-
Hong Kong Wang Xia said growth
Bank of Communications International investment bank analyst.
"L'Oreal only needs to spend a small amount of money to take over the biggest mask player in China," Wang said . ".
"It can be fast through this deal
Keep track of its market share in this area, with cheap valuations.
The offer sets the valuation of Magic Holdings at 9.
It was twice the sales of the previous fiscal year.
2012 of L'Oreal's sales are seven times that of L'Oreal, while L'Oreal's acquisition of YSL beauty is valued at 1. 8 times sales.
Magic Holdings's sales in 2012 were 0. 15 billion euros, up 29% from the previous year.
China's cosmetics market is expected to grow 63% to 2015 in the next five years, while the second year will be flat.
Japan ranked first, according to consumer research firm Euromonitor.
In a joint statement, Magic Holding Chairman Tang Yingnian welcomed L'Oreal's acquisition.
Magic shares soared to 21%
Time high for Hk6
On Friday, in a flat market as a whole. HSI.
The deal marks the return of the French group to the acquisition of the region, in 2003 and the following year the acquisition of the Chinese skincare brand Mininurse, a cosmetics brand founded by the Chinese
American TV show host
Six major shareholders representing 62.
L'Oreal said that 3% of the shares supported L'Oreal's proposal, but the deal still needs approval from the Chinese Ministry of Commerce.
Magic Holdings, with a market capitalization of $0. 676 billion, had 288 distributors at the end of December, up from 261 in last June.
The company is also expanding into e-commerce.
This year, L'Oreal acquired an online distributor, which will make it easier for L'Oreal to enter the booming online retail market in China.
L'Oreal's offer is 25% higher than Magic Holding's final closing price before the stock trading suspension on August 12 to prevent speculation.
The deal will be financed by L'Oreal's cash reserves and BNP Paribas's € 0. 65 billion credit (BNPP. PA)
The two companies said in a joint statement.
Upon completion, the shares will be withdrawn from the Hong Kong stock exchange.
Magic Holdings has two factories in southern China with an annual capacity of about 0. 26 billion peels-
Remove masks and 12 million bottles of toiletriesoff masks.
A new production facility will be put into use in the medium term
2015, the total capacity is expected to be increased to about 0. 4 billion pieces of stripping-
Remove masks every year.
L'Oreal, did 1.
Sales in China in 2012 amounted to 5 billion euros, with a research lab and two production plants near Shanghai that produce mass market products such as L'Oreal creams, Garnier shampoos and some hair dyes.
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