L’Oréal’s proposal is supported by Magic’s board of directors. Six key shareholders, representing just over 62% of the company’s equity, are already committed to supporting L’Oréal’s proposal, according to a release from the Paris-based beauty giant.
The implementation of the transaction is subject to the approval of the Ministry of Commerce of the People’s Republic of China (MOFCOM).
A specialist in cosmetic facial masks and a publically traded firm, Magic’s turnover in 2012 was approximately €150 million, up some 29% over 2011. Magic’s MG brand is one of China’s leading brands in the mask category.
Relying on Magic’s highly talented management and teams, L’Oréal intends to develop this Chinese brand by contributing its science based expertise, and using its advanced and applied research in its China Research & Innovation center and across the world.
L’Oréal contends the MG brand will deliver benefits to Chinese consumers by beautifully complementing L’Oréal’s Consumer Products Division existing portfolio of brands in China.