The global, multi-channel and multi-brand cosmetics group Natura &Co has chosen BNY Mellon as its depositary bank to enable their acquisition of Avon Products (Avon).
This all-share transaction listed Natura &Co’s American depositary receipts (ADRs) on the New York Stock Exchange.
According to BNY Mellon, Natura &Co is the first Brazilian multinational to use ADRs in their acquisition of an American company.
BNY Mellon established the Natura &Co ADR programme for its Avon acquisition. As of transaction close on 3 January 2020, each share of Avon was converted into 0.3 ADRs, or, at the election of the Avon shareholder, 0.6 Natura &Co shares trading in Brazil.
Chris Kearns, CEO of BNY Mellon depositary receipts, commented: “This deal represents a significant milestone in the Brazilian market and highlights the capitalisation, flexibility and convenience offered by depositary receipts in structuring cross-border mergers and acquisitions.”
Jose Filippo, chief financial officer and investor relations of Natura &Co., added: “Natura &Co is now listed and traded on the NYSE. This was a crucial step to conclude the acquisition of Avon and create the fourth-largest pure-play beauty group in the world.”
