Procter and Gamble has agreed to sell off 43 of its hair and beauty brands to beauty giant Coty for $12.5bn (£8.13bn).

 

Coty’s portfolio of brands includes perfumes such as Calvin Klein and cosmetics like Rimmel London. It will gain control over Wella and Max Factor as well as Hugo Boss, Dolce & Gabbana and Gucci fragrances.
P&G will merge the 43 brands into Coty through a complex deal referred to as a 'Reverse Morris Trust' structure, in which the FMCG firm will spin off the operations into a new entity. P&G’s shareholders will own a majority stake in the new organisation.
Depending on the final value of the transaction, P&G estimates a one-off gain of $5bn to $7bn from the deal.