Beijing Dabao Cosmetics Co is seeking investors to acquire 100% of its stakes, and market sources say Avon intends to be the buyer.  Avon stands to further expand in China, and the potential acquisition heralds a new phase of competition in the country's direct sales industry.Beijing Dabao Cosmetics Co put itself up for sale on February 27 by registering with the Beijing Equity Exchange, looking for a buyer at 2.3 billion Yuan (US$297 million). Media reports say that Johnson and Johnson as well as Avon Products Inc intend to participate in the bidding.  Kao Shoukang, president of Avon Products (China) Co Ltd says that the company always has its eyes open for any opportunity to acquire good mainland brands or product entities.  Kao's statement has left the market with room for imagination, with many sources predicting that Avon will acquire Dabao in order to penetrate further into the mainland cosmetics market, despite the fact that Avon has no history of brand acquisitions on the mainland.According to the company’s statement posted on Beijing Equity Exchange, in 2006 Dabao

You are currently reading 187 words of 567 total words in this article.
To continue reading this article, you must be a subscriber. Log in now..

Finish this article for free.
C-M-O-D-O AUTHENTIC SITE PayPal
@2014 China Economy @ China Perspective.
All Right Reserved.
Server SSL Certificate