Brazilian cosmetics maker Natura Cosmeticos SA disclosed in a securities filing on Friday that it was in deal talks with Avon Products Inc but offered no details.
One source with knowledge of the matter said that Avon and Natura have been considering a deal that would put the company back together three years after the split up of its businesses.
In the discussions, that have been ongoing for some months, Natura would buy Avon`s now private North American business, in addition to the publicly traded Avon, the source added, asking for anonymity to discuss private talks.
Goldman Sachs & Co is working with Avon and UBS AG is representing Natura in the talks, the source said. Goldman and UBS did not immediately comment.
The Wall Street Journal reported earlier on Friday the preliminary talks, citing a person familiar with the matter.
In its securities filing on Friday, Natura confirmed "discussions" about a potential transaction, but it did not elaborate further.
"We never comment on this kind of speculation," an Avon spokeswoman told Reuters via email.
Natura shares were down 8.6 percent on the Sao Paulo stock exchange, at 41.15 reais. Avon shares were up 10.6 percent in New York.
New York-based Avon sold a majority stake in its underperforming North American business to private equity firm Cerberus Capital in 2015, while retaining a roughly 20 percent interest.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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