French cosmetics giant L’Oréal has announced its acquisition of Australian luxury cosmetics company Aesop in a landmark deal worth $2.5bn. This marks L’Oréal’s largest acquisition in decades, as it typically focuses on purchasing smaller brands to expand its global reach.

Aesop, which was previously owned by Brazilian company Natura, is known for its high-end skincare and beauty products, and has a strong reputation in the industry for its commitment to natural ingredients and sustainable practices.

According to Natura, the deal with L’Oréal will allow the company to focus on its strategic priorities in Latin America and reduce its debt.

This acquisition is significant for L’Oréal, as it expands the company’s reach in the luxury cosmetics market and enhances its product offerings. Aesop’s strong brand identity and loyal customer base make it a valuable addition to L’Oréal’s portfolio, and the company is expected to leverage its global resources to drive growth for the brand.

While the acquisition of a mature brand like Aesop is a departure from L’Oréal’s usual strategy, it underscores the company’s commitment to investing in quality products and expanding its presence in the luxury cosmetics market.

The deal is subject to regulatory approvals and is expected to be completed by the end of the year.