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Linklaters advises L’Oreal on €1bn sale of The Body Shop alongside Baker McKenzie and Davis Polk

Linklaters, Davis Polk & Wardwell and Baker McKenzie are advising as L’Oreal looks to sell The Body shop for €1bn to Brazilian cosmetic company Natura.

Natura is in exclusive negotiations with L’Oreal, which put The Body Shop up for sale in February after it bought the business in 2006 for £652m.

The world’s largest cosmetics company announced the decision following a fall in The Body Shop’s operating profits, which sat at €34m at year end in 2016, down a 38% from €55m the previous year. The deal is expected to close later this year.

London and Paris-based Linklaters corporate partner Vincent Ponsonnaille (pictured) led the Linklaters team advising L’Oreal, which included London banking partner Naidenov and Paris corporate partner Laurent Victor-Michel. The cosmetic company also instructed Baker McKenzie with a team led by London Funds partner James Burdett.

Natura turned to Davis Polk for advice, with Jacques Naquet-Radiguet leading the firm’s team.

L’Oreal previously turned to Linklaters for advice in its original purchase of The Body Shop, with London-based Corporate partner Richard Godden leading the Linklaters team. Baker McKenzie advised The Body Shop on the deal.

The Magic Circle firm also advised L’Oreal over its buyout of China-based cosmetic mask manufacturer Magic Holdings International for around $845m in 2014. Paris-based corporate partner Bruno Derieux led the team.