MANILA -- The Philippines' antitrust authority said Friday it approved the acquisition of Avon Products Inc by Brazil's Natura Group, whose stable of brands includes The Body Shop.
The merger between the two cosmetics giants "does not result in substantial lessening of competition" because they do not operate in the same market, the Philippine Competition Commission said in a statement.
Avon sells its products door-to-door through "Avon Ladies" while The Body Shop operates specialty stores, said the PCC. The two also offer different price points, it said.
"The transaction will not likely result in any substantial change in the market structure. Given the numerous beauty and personal care companies in the market, sufficient competitive constraints remain after the transaction," the PCC said.
São Paulo-based Natura Group also includes Natura Cosméticos and Aesop brands.
The merger will result in the world's fourth largest beauty products company, with estimated annual gross revenues of $10 billion (P518 billion).
-- with a report from Agence France-Presse