Brazil's Natura says it is not in talks with Avon over possible takeover

Brazil’s Natura Cosmeticos SA said on Monday it was not in talks with cosmetics maker Avon Products Inc about a possible takeover of the London-based company.

The comments came after the Wall Street Journal reported that Natura has reached out to Avon for a potential takeover.

Shares of Avon, which has a market value of about $920 million, rose 21 percent in U.S. extended trading after the report citing people familiar with the matter.

“Natura Cosmeticos notifies that there are no talks underway about a possible Avon acquisition,” the major Brazilian cosmetics retailer said.

Avon Chief Executive Officer Jan Zijderveld has been trying to turn around the iconic cosmetics brand that has faced a number of issues, including declining sales and shareholder pressures.

Zijderveld shuffled the company’s management, appointing a new chief digital officer and three new general managers in its top markets.

Avon was not immediately available for comment.