The Brazilian cosmetics giant Natura, which owns The Body Shop, has made a move to buy Avon.
The $2 billion all-stock purchase will see Natura's shareholders own 76% of the combined companies, which will have a total revenue in excess of $10 billion. It will also create the world's fourth-largest cosmetics company.
Avon has spent the last few years trying to modernise its business, including moving its headquarters to the UK, as the growth of online shopping resulted in Avon's direct door-to-door sales approach becoming less popular. It also cut 2,500 jobs around the world as part of the plans announced in 2016.
Avon currently has around 2.2 million direct marketing consultants in Brazil, but analysts have suggested that Natura will need to provide heavy investment to improve in operations in the country. However, many Avon representatives in Brazil already sell Natura products.