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L'Oreal in Body Shop deal

17/03/2006

Ethically sound cosmetics firm Body Shop International today announced that it is being taken over by French giant L'Oreal.

Following newspaper speculation, L'Oreal said today that it has agreed to pay 300p per Body Shop share, giving the high-street chain a market value of £652.3 million.

L'Oreal, which produces pre-eminent cosmetics brands like Lancome, announced on February 23rd that it was eyeing a bid for Body Shop and its 1,900 global outlets.

The cosmetics giant said that Body Shop gives it a significant boost as a "sizeable and complimentary brand" with unique expertise in the mass prestige retail sector.

L'Oreal chief Sir Lindsay Owen-Jones said: "Combining L'Oreal's expertise and knowledge of international markets with The Body Shop's distinct culture and values will benefit both companies."

Body Shop was founded in 1976 by Anita and Gordon Roddick. The couple stepped down in 2002 but remain with the firm as non-executive directors.

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