Natura & Co Considers Divesting Avon Business

Natura & Co is exploring a separation of its Avon businesses outside of Latin America.This will result in two separate publicly traded beauty companies, Natura and Avon, with separate governance, management teams and business plans. Natura & Co will still run Avon's Latin American business.

The brand owner claims the move will allow it to implement a more focused business strategy, delivering better shareholder value. "The aim of this study is to unlock the full potential of both companies, which have unique geographical footprints and serve diverse beauty consultants and consumers," Natura & Co said in a statement.

"This potential separation would also allow shareholders to better understand the respective companies' financial performance, structure, growth prospects and investment philosophy." Natura & Co stressed that there was no guarantee that the spin-off of its business would be approved. The move requires final approval from the board of directors, as well as approval from a majority of shareholders.

Natura & Co has spent the past year working to simplify its corporate structure.