Brazilian personal and beauty products company Natura Cosméticos SA obtained support from Banco Santander SA, Itaú Unibanco Holding SA and Banco Bradesco SA to fund the potential acquisition of Avon Products Inc., Bloomberg reported, citing people familiar with knowledge of the matter.
The deal could be valued at more than $2 billion, the report added, citing sources.
As of now, the banks have not made conclusive financing commitments because the beauty company has not finalized the acquisition plan, one of the people said.
Citigroup Inc. may also provide funds for the acquisition, the report added.
Natura, Itau and Citigroup declined to comment, while Bradesco and Santander did not respond to the news agency's request for comment.
Separately, Reuters on May 13 reported that Natura was close to striking a deal, which is likely to be announced by the end of this week or in the next week.
According to a source, the bid financing discussions delayed the announcement of the deal.
UBS AG, which is advising Natura on the deal, and Morgan Stanley also offered the funding, according to the report.
On April 25, Avon agreed to sell its North American business to LG Household & Health Care Ltd. for $125 million in cash.