The Natura Group announced Friday that the company’s board approved the merger of Avon.
The company said Avon shareholders will own 27.3% of the group, while the remaining 72.3% will be owned by Natura’s shareholders.
The group’s shares rose 3.18% at a time when negotiations stalled to reveal the material fact.
Previously, the company had confirmed the completion of the acquisition of Avon, in an agreement that created the fourth largest beauty group in the world and valued the 130-year-old US rival at approximately $2 billion.
Avon was evaluated at US $ 3.7 billion and the new holding at US $11 billion, according to the Brazilian company when announcing the merger.
Natura has 1.4% of the world market and Avon 1.2%, according to the consultant specializing in market research. The sector is led by the French L’Oréal, with a 9.7% market share, followed by the American Procter & Gamble and the British-Dutch Unilever, with 7.7% and 7.5%, respectively.