Avon news about the company possibly in talks for a takeover have AVP stock heading higher on Friday.
The recent reports claim that Avon (NYSE:AVP) is currently in talks with Natura about a takeover of the company. The reports claim that these talks are still in the early stages. As such, it is unlikely there will be an official confirmation anytime soon.
Natura picking up Avon would makes sense. The company is based in Brazil and has a similar focus on beauty products. It’s also worth noting that countries like Brazil still have prominent door-to-door sales. This isn’t the case for the U.S., which hasn’t been helping Avon these last few years.
According to the reports about this Avon news, Natura is looking to acquire both of the Avon businesses. This includes the private business that operates in North America, as well as the publicly-traded company with a headquarters in London.
“We don’t comment on speculation but we believe in the turnaround strategy that we have articulated to investors,” an Avon spokesperson told Bloomberg. “We are focused on executing our plan and driving long term value for our shareholders.”
This isn’t actually the first time that Natura’s name has come up in discussions about Avon news such as this. There was also talk back in September 2018 that the company was interested in acquiring Avon. It’s possible the current discussions are a continuation of these previous ones.
AVP stock was up 5% as of noon Friday.
As of this writing, William White did not hold a position in any of the aforementioned securities.