FRANKFURT, Oct 2 (Reuters) German cosmetics group Beiersdorf AG has agreed to buy an 85 percent stake in C-BONS Holding's hair care business in China for 269.45 million euros (1.9 million), Beiersdorf said on Tuesday.
British Virgin Islands-registered Global Source Investments will continue to hold a 15 percent stake in C-BONS Hair Care for at least two years after closing, which is expected by year-end, Beiersdorf said in a statement.
Shares of Beiersdorf, known for its Nivea brand, were up 0.8 percent at 52.80 euros by 1225 GMT, underperforming a 2.4 percent rise in the midcap MDAX index.
C-BONS is a Hong Kong-based company with businesses across various industries, including real estate, beauty and personal care, and pharmaceuticals. Its C-BONS hair care unit is one of the leading players in the Chinese market.
Beiersdorf Chief Financial Officer Bernhard Duettmann had told Reuters in July that investors would hear news on the investment in C-BONS toward the end of the year.
In February, Beiersdorf signed a letter of intent with C-BONS to explore hair care opportunities in Asia.
Hamburg-based Beiersdorf is seeking acquisitions in Asia and also has interest in the United States as it battles tepid growth in the European market, where it generates most of its revenue.
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