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