SAO PAULO (Reuters) - Brazilian makeup brand Natura Cosmeticos SA is close to completing a deal to acquire Avon Products Inc., a source with knowledge of the matter said on Monday.
According to the person, who asked for anonymity to disclose private talks, the deal could be announced as soon as Friday, or next week at the latest. It was unclear whether Natura would pay a premium on current market prices or not.
Natura and Avon, which has a market capitalization of $1.4 billion, did not immediately comment on the matter.
Discussions of the bid financing delayed the announcement, the source added. Initially UBS AG, which is advising Natura on the deal, and Morgan Stanley offered the funding.
But Natura received offers from local banks such as Banco Bradesco SA, Itau Unibanco Holding SA and Banco Santander Brasil SA, the source added. Citigroup may also join the financing, he said, though the domestic Brazilian banks are now likely to provide most of it.
The banks did not immediately comment on the matter.
Bloomberg reported earlier on Monday that Natura had obtained bank support for the bid.
Reporting by Tatiana Bautzer; Editing by Sandra Maler
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