LOreal Gets OK to Buy Chinese SkinCare Company

L'Oreal Gets OK to Buy Chinese Skin-Care Company

The bid, which is worth a total of HK $6.53 billion (U.S. $843 million), was approved by China's commerce ministry, the companies said in a joint statement. Magic's MG brand is one of the leaders in China's fast-growing cosmetic facial mask market.

PARIS -- French cosmetics giant L'Oreal (IW 1000/155) said it had received the official green light for its $843 million bid to acquire the Hong Kong-listed facial care company Magic Holdings International.

The bid, which is worth a total of HK $6.53 billion (U.S. $843 million), was approved by China's commerce ministry, the companies said in a joint statement.

Magic's MG brand is one of the leaders in China's fast-growing cosmetic facial mask market.

L'Oreal has had a presence in China since 1997. It currently employs 3,500 and operates two plants and a research center there.

Last week, L'Oreal said it was halting the sale of its Garnier brand in China to focus on its L'Oreal Paris and Maybelline New York mass-market brands, which have been enjoyed better sales.

Western companies believe that the beauty and personal health-products market in China, which accounted for more than a quarter of luxury goods sales there, still has enormous potential.

However, the sector has recently felt the chilling effect of a Chinese government clampdown on corruption, which often takes the form of gifts of luxury goods.

Copyright Agence France-Presse, 2014

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish