L'Oreal said: "The approval of the Ministry of Commerce of China is an important step in the transaction process, and it is expected that the transaction will be completed in the second quarter of 2014."
Meizhi Holdings announced yesterday that “the Ministry of Commerce has communicated to the Offeror and the Company on January 9, 2014 the decision to approve the proposal in accordance with China’s anti-monopoly law. Therefore, the premise of the Ministry of Commerce for the proposal and implementation of the agreement plan has been reached. ."
L'Oréal told the “First Financial Daily†reporter: “The approval of the Ministry of Commerce of China is an important step in the transaction process, and it is expected that the transaction will be completed in the second quarter of 2014.â€
In August 2013, L'Oréal Group defeated another potential competitive tender offerer and announced the acquisition of Midea. L'Oréal said that the proposal to acquire the entire shareholding of Midea Holdings through the agreement is supported by the US board of directors. The six major shareholders, including 62.3% of the company's total share capital, including the founding management team and organization such as founder Yu Yuyuan, have promised to support L'Oréal's proposal. The transaction was still subject to approval by the Chinese Ministry of Commerce.
According to ACNielsen's report, the US brand's share in the mask market in China in 2012 was 26.4%, ranking first in the mask industry. L'Oréal's proposed purchase price is HK$6.30 per share and the total price will reach HK$6.538 billion. The price is also equivalent to half of L'Oreal's sales in China in 2012, and it is also the largest acquisition in China's daily chemical market.
Relevant persons inside L'Oreal told this reporter that from the perspective of positioning, the United States should be placed in the mass cosmetics department of L'Oreal. Among the four major business units of L'Oreal (professional hair products, mass cosmetics, high-end cosmetics, active health cosmetics), the largest sales volume is the mass cosmetics category, reaching 261.34 billion euros. The best public makeup brand in China is L'Oreal Paris. Maybelline.
Just two days before the Ministry of Commerce approved L'Oréal's acquisition of the US, L'Oreal decided to stop selling its branded Garnier products in China. Lan Zhenzhen, vice president of L'Oreal China, told reporters that in the future, he will concentrate on developing two leading brands. After the acquisition of the United States, L'Oreal's cosmetics department also maintains the scale of four brands, L'Oreal Paris, Maybelline, Little Nurse and Beauty.
Prior to this, its US competitor Revlon had just announced that it would withdraw from the Chinese market and reduce 1,100 jobs. Feng Jianjun, a person in the cosmetics industry, told reporters that after years of development, from the current industry situation, the competition between local brands and foreign brands has entered a new stage, and local brands are accelerating to catch up with foreign brands in certain areas.
At the end of 2012, Nielsen released a set of data: In May 2009, the market share of multinational cosmetics company brands (excluding Dabao) was 57.9%, and by May 2012, this number had fallen to 44.5%.
“L'Oreal's acquisition of local brand beauty is also because of its potential value.†Feng Jianjun told reporters that in the Watsons channel, for example, in the Watsons channel, the sales of more than 1,300 stores in 2012 were about 12 billion, and the eye mask brand was 1.39 billion yuan, of which Watsons owns The brand is 500 million, the US is 400 million, and the other 100 brands share the remaining sales.
Regarding the plan for the acquisition of the United States, L'Oréal insiders told the “First Financial Daily†that “US will operate as an independent business unit of L'Oreal China. In addition, the current management and team will remain in office. The board of directors will be composed of current management and L'Oreal representatives."
“The important value of L'Oréal's acquisition of the US brand is that the mask is one of the most widely watched categories in the personal care brand.†Wu Zhigang, deputy director of the China Cosmetics Marketing Research Center, said that L'Oréal's brand pyramid is in great need of such a wide contact with the consumer group. And the communication of the "Taki" brand, which is of great significance to the potential guiding role of consumers and the transformation of other high-end brands in L'Oreal.
Although it is not considered that Garnier has withdrawn from China and the acquisition of the United States is a related incident, Feng Jianjun said that L'Oreal has been developing in China for many years and has more than 20 brands. In the new competitive situation, the positioning of the brand needs to be reorganized. L'Oreal's skin care products in China, men Cosmetics, hair dyes, hairdressing and make-up have a leading market share. In the case of a large number of brands, the company definitely chooses to invest more resources in key areas.
L'Oreal China's 2012 financial report shows that its sales in China reached 12.05 billion yuan, a year-on-year increase of 12.4%. According to the data provided, L'Oreal Paris is the largest beauty brand in China, and Maybelline New York is currently the largest makeup brand in China. In the past 17 years since entering China, L'Oréal's growth rate in recent years has been double-digit growth for 12 consecutive years.
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