TOKYO--Shiseido Co. (4911.TO) said Friday that it has entered
exclusive talks to sell two of its Paris-based cosmetics businesses
to its bigger rival L'Oreal S.A., adding that the French company
has offered EUR230 million for a possible buyout.
Japan's biggest cosmetics maker, which suffered its first net
loss in eight years in its last business year, said the move is
part of its steps to concentrate its business resources on growth
fields with sustainable high profits.
In line with the business strategy, Shiseido is in talks to sell
Carita International S.A. and Laboratoires Decleor S.A.S., both
specialising in skin care, body care, hair care treatment and other
products, to L'Oreal. Shiseido said the terms and conditions,
including the transaction price, have yet to be decided.
Shiseido is aiming to return to a net profit of Y20 billion in
the current business year to March 2014 after suffering a net loss
of Y14.69 billion in the just-ended fiscal term. Its bottom line
was hurt by a falloff in domestic sales and a consumer backlash in
China due to political tensions between Tokyo and Beijing over a
territorial dispute.
The firm is also struggling with flagging sales at Bare
Escentuals, acquired by Shiseido in March 2010.
Write to Hiroyuki Kachi at hiroyuki.kachi@wsj.com
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