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L'OREAL

China gives L’Oreal green light for $843m purchase

French cosmetics giant L'Oreal said it had received the official greenlight for its $843 million bid to acquire the Hong Kong-listed facial care company Magic Holdings International.

Published: 14 January 2014 10:40 CET
China gives L'Oreal green light for $843m purchase
French cosmetics giant L'Oreal getsthe green light for a €636 million investment in Hong Kong's Magic Holdings International. Photo: Jgoge/Flickr

The bid of HK$6.30 per share is worth a total of HK$6.53 billion (US$843 million, €636 million ) and was approved by China's commerce ministry, the companies said in a joint statement.

Magic's MG brand is one of the leaders in China's fast-growing cosmetic facial mask market.

Present in China since 1997, L'Oreal has 3,500 employees in the country where it operates two plants and a research centre.

Last week, L'Oreal said it was halting the sale of its Garnier brand in China to focus on its L'Oreal Paris and Maybelline New York mass market brands, which have been enjoyed better sales.

Western companies believe that the beauty and personal health products market in China, which accounted for more than a quarter of luxury goods sales there, still has enormous potential.

However the sector has recently felt the chilling effect of a Chinese government clampdown on corruption, which often takes the form of gifts of luxury goods.

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MODEL

L’Oreal drops trans model over controversial comments

French cosmetics giant L'Oreal on Friday confirmed it had dropped a British transgender model over comments the company deemed "at odds with our values," after she was hired as part of a diversity campaign.

Published: 2 September 2017 08:59 CEST
L'Oreal drops trans model over controversial comments
File photo: AFP

“L'Oreal champions diversity,” the beauty brand said on Twitter. “Comments by Munroe Bergdorf are at odds with our values and so we have decided to end our partnership with her”.

L'Oreal had tapped Bergdorf — a 29-year-old model, DJ and trans activist whose father is Jamaican — as one of the five newest faces of its #allworthit campaign to introduce the five new shades of its True Match face makeup.

The foundation make-up boasts 28 unique shades ranging from very light to dark brown in a bid to match the myriad different skin tones and textures of people worldwide.

According to British Vogue, Bergdorf was the first transgender woman to be featured in a L'Oreal Paris UK campaign.

But controversy erupted when Bergdorf took to Facebook in a now-deleted post to react to events in the US city of Charlottesville, where a woman was killed on August 12th after an avowed white supremacist rammed his car into a group of anti-racism counter-protesters.

“Honestly I don't have energy to talk about the racial violence of white people any more. Yes ALL white people,” Bergdorf wrote, according to copies posted in British media.

“Once white people begin to admit that their race is the most violent and oppressive force of nature on Earth… then we can talk,” the model reportedly wrote.

L'Oreal told British media it “remains committed to celebrating diversity and breaking down barriers in beauty”.

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