Proctor and Gamble is set to ink a deal which will see it move 43 brands to Coty Inc in a complicated merger deal worth $12.5bn.
Following P&G, the world’s biggest advertiser, announcing that it was to clear out 100 non-core brands earlier this year, Coty issued a merger offer which could bolster P&G’s coffers by a real-world total of $5.9bn.
Coty Inc, a beauty firm with Rimmel cosmetics and Calvin Klein perfumes among its portfolio, will acquire P&G's cosmetics, hair colour and fragrance businesses including Hugo Boss, Dolce & Gabbana and Gucci.
The deal will see Coty almost double its earning power to $10bn per annum at the expense of P&G taking a 52 per cent controlling stake in the New York-based firm.
It leaves P&G with 65 brands in 10 categories almost a year after it announced plans to scrap 100 brands in order to become a leaner, faster business.