Beauty products company Natura Cosméticos SA on May 22 confirmed reports that it is in advanced discussions to acquire British rival Avon Products Inc. in an all-stock deal.

The Brazilian company added that it does not intend to comment on the expected timing for an announcement of the potential deal.

The announcement follows the Financial Times report that Natura is set to buy a 76% stake in Avon.

The transaction, expected to be announced on the morning of May 22, will value the U.K. personal care and beauty products company at over $2 billion, the newspaper reported, citing people close to the matter.

Sources also reportedly said the remainder of the direct-selling company will be owned by Avon's existing shareholders.

Natura added that while it is negotiating the final contractual terms of the deal with Avon, a transaction cannot be guaranteed.

The Brazilian company and Avon did not immediately respond to S&P Global Market Intelligence's emails seeking comment.

The news comes days after Natura reportedly secured bank financing for the potential acquisition of Avon.

In April, LG Household & Health Care Ltd. bought New Avon LLC, the company's North American unit, from Avon and majority owner Cerberus Capital Management LP for $125 million in cash.