L'Oreal recently made an US$840 million-dollar offer to purchase Magic Holdings International Ltd.. With this logical move, L'Oreal hopes to take the lead in the multibillion Chinese skincare market. Magic Holdings, valued at US$15 billion, currently holds the record for having the biggest share in the facial mask market in China. Euromonitor, a consumer research firm, expects the skincare market to increase to at least 35% within the next two years.
Summer Wang, Hong Kong-based analyst for BOCOM International Investment Bank, pointed out that the substantial offer would be a small price to pay for L'Oreal's expansion in a fast-growing segment.
Magic Holdings chairman Stephen Tang welcomes the offer. Six major shareholders representing 62.3% have indicated their support to the deal, according to a statement made by the French company.
Currently, Magic Holdings stocks have surged in the market with an unparalleled increase of shares valued at HKD6.10 on Friday.
Join the Conversation