Avon Products Inc. AVP confirmed Wednesday that it's in advanced talks with Natura Cosmeticos SA about being sold to the Brazilian company in an all-stock transaction.
There is no guarantee a transaction will result from the discussions, the cosmetics maker said in a statement.
"Avon does not intend to make any additional comments regarding these discussions unless and until it is appropriate to do so, or a formal agreement has been reached."
Natura is slated to buy Avon in an all-stock deal that values the U.S. group at more than $2 billion, the Financial Times reported, citing people familiar with the matter.
Natura will end up owning about 76 percent of the combined group, while the rest will be owned by Avon shareholders, according to FT.
Reuters reported last week that Natura was close to completing a deal to buy Avon.
The U.S. company has a market capitalization of $1.42 billion, per Refinitiv data, Reuters said.
Avon shares were rallying by 14.38 percent to $3.66 at the time of publication Wednesday.
Editor's note: An after-hours Reuters report showed Natura also confirmed the deal. Natura said Avon shareholders would receive 0.3 Natura shares for each Avon share owned. Natura will list its American Depositary Receipts on the NYSE following the deal with Avon.
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