JAPAN: Kao Corp. is in the final stage of negotiations to purchase the cosmetics operations of Kanebo Ltd. The acquisition is expected to exceed $3.8 billion.
Under the proposed agreement, Kanebo will sell the operations to a new company to be set up by Kao, which will obtain the trademark rights to and sales network of the Kanebo brand.
Kanbeo executives said the company’s cosmetics business generated $2 billion in sales for the fiscal year ended March 31, 2003. Kao’s operations in this area earned $718 million. Kao executives said the acquisition will lift its cosmetics sales on a group basis to about $2.8 billion.