Procter & Gamble receives takeover bids for beauty businesses

Procter & Gamble (P&G) is receiving binding bids from several companies for the acquisition of its beauty businesses, which are valued at around $12bn.

Henkel, Coty, KKR, Clayton Dubilier & Rice and Warburg Pincus are among the bidders competing for P&G’s assets.

The $7bn worth P&G’s haircare business including Wella and Clairol brands received takeover offers from Henkel and KKR.

Coty is looking to acquire P&G’s cosmetic and fragrance units, which includes Olay and Christina Aguilera Perfume brands, respectively.

P&G’s cosmetics and fragrance business could be valued at around $3bn and $2bn, respectively.

Clayton Dubilier & Rice will compete with Coty for the cosmetics business, while Warburg Pincus will compete for the fragrance business.

Revlon was also interested to acquire the cosmetic assets but has withdrawn from the race.

P&G is receiving bids as part of its strategy to divest several of its non-core assets in order to cut costs.

The company has already sold its Duracell battery brand to Warren Buffett’s Berkshire Hathaway for $4.7bn and sold few of its soap brands to Unilever.