L’Oréal has been given the go-ahead by the Ministry of Commerce of the People’s Republic of China (MOFCOM) to proceed with its acquisition of Magic Holdings International. The company, listed on the Hong Kong Stock Exchange, specialises in cosmetics facial masks – a key segment within China’s burgeoning beauty market. The deal is expected to close in the second quarter of 2014.
Magic Holding’s turnover in fiscal year 2012-2013 was around €160m (+25% in Hong Kong dollars versus the previous fiscal year). “Facial masks are one of China’s beauty market’s fastest growing areas with very promising development prospects,” noted L’Oréal in a statement. “Magic’s MG brand is one of China’s leading brands in this category.”
The MG brand will complement L’Oréal’s Consumer Products Division in China, which is spearheaded by two global brands: L’Oréal Paris and Maybelline New York. The addition of a key Chinese brand is expected to recruit yet more new consumers in the strategic Chinese market.
About L’Oréal China
L’Oréal has been committed to China since 1997. Today L’Oréal has more than 3,500 employees in China, a Research & Innovation Center in Shanghai, and two plants in Suzhou and Yichang. After 17 years of rapid, solid and sustained development, L’Oréal has successfully established itself as a leader in the Chinese beauty market. L’Oréal is number one in skincare, make-up, men’s skincare, professional products, luxury beauty and dermo-cosmetics markets.
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