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.
The Wall Street Journal reported that Avon has been considering a deal that would put the company back together three years after the split up of its businesses.
Avon`s directors have discussed a sale to Brazilian rival Natura, and the talks include a scenario in which Natura would buy Avon`s now private North American business, in addition to the publicly traded Avon, the report said, citing a person familiar with the matter.
The talks are preliminary and may not result in a deal, the report added.
"We never comment on this kind of speculation," an Avon spokeswoman told Reuters via email. "We remain firmly focussed on delivering Avon`s `Open Up` transformation strategy."
In its securities filing Friday, Natura confirmed "discussions" about a potential transaction, but it did not elaborate further.
Natura shares were down 2.2 percent on the Sao Paulo stock exchange, at 44.01 reais. Avon shares were up 7.5 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.
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