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Procter & Gamble receives offers for beauty assets: Reuters

Last updated: 01:48 10 Jun 2015 AEST, First published: 23:48 09 Jun 2015 AEST

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Henkel made an offer for P&G's haircare business, which includes the Wella and Clairol brands, and could fetch a valuation of $5 billion to $7 billion, the people told Reuters.

Procter & Gamble (NYSE:PG) advanced in morning trades after the consumer products company reportedly received bids from Coty and Germany's Henkel for separate parts of its beauty-related businesses.

Shares of the Cincinnati, Ohio-based company were up 0.3 percent to $77.92 at 9:39 a.m. in New York. The stock has lost 14 percent this year.

Those businesses could be worth a total of up to $12 billion, Reuters reported, citing people familiar with the matter.

The bids were submitted yesterday. They bring P&G one step closer to shedding several assets it considers non-core, as its chief executive officer, A.G. Lafley, presses on with his cost-cutting strategy.

Henkel made an offer for P&G's haircare business, which includes the Wella and Clairol brands, and could fetch a valuation of $5 billion to $7 billion, the people told Reuters.

While Henkel is considered to be the most likely buyer, private equity firm KKR & Co LP also submitted a bid for the haircare business, Reuters added, citing the people.

Coty, which makes perfume for fashion brands Calvin Klein and Marc Jacobs and owns nail polish brand OPI and Rimmel mascara, has submitted bids for P&G's fragrance unit and its cosmetics business.

P&G has already divested some of its non-core brands. Last year, the company sold its Duracell battery brand to Warren Buffett's Berkshire Hathaway Inc for $4.7 billion and sold some of its soap brands to Unilever Plc.

 

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