Coty has sealed a deal to buy Procter & Gamble beauty business, which includes brands such as Clairol and Wella, in a $12.5 billon transaction that will make the perfume maker one of the world's largest beauty companies.
P&G will separate 43 of its cosmetics, fragrance and haircare brands and fold them into Coty under a "Reverse Morris Trust" transaction.
This will ultimately give P&G shareholders a majority stake in the new entity.
The combined company is expected to have annual revenue of more than $10 billion - double Coty's turnover - and will be led by Coty CEO Bart Becht.
Coty said the deal valued the P&G Beauty Business at $12.5 billion at the time of the proposal, based on the number of Coty basic shares outstanding and an average Coty trading price.
Based on Coty's current stock price and outstanding shares and equity grants, the value of the transaction is about $15 billion, P&G said.
