The licensor of each brand involved in the transaction must consent, and neither Dolce & Gabbana nor Christina Aguilera perfumes did so by the deadline.
P&G is getting out of the fragrance industry altogether. So, the Dolce & Gabbana and Christina Aguilera perfume brands will need a new home.
“We will now work with the two license holders on next steps given that we have made it clear that we plan to exit the fragrance business,” Paul Fox, a spokesman for P&G tells the Cincinnati Business Courier. “It is too early to speculate on those next steps,” he adds.
Bought and paid for
Ten other fragrance brands are expected to move from P&G to Coty without incident: Hugo Boss, Gucci, Lacoste, Bruno Banani, Escada, Mexx, James Bond, Gabriela Sabatini, Stella McCartney, and Alexander McQueen.
These brands did consent to the transfer of licence and now only await regulatory approval of the transaction.
That the Dolce & Gabbana and Christina Aguilera perfume brands opted out “will affect the final deal price,” says Fox. “It does not impact the deal closing, which is still set for the second half of 2016.”
Hypermarcas deal under scrutiny
In November, Coty announced another ambitious acquisition, the personal care and beauty business of Brazil’s Hypermarcas.
While this deal was approved by that country’s regulatory body Cade, beauty care competitor Henkel has since petitioned the group to reconsider on the grounds that Coty, once augmented with hair care brands that previously belonged to P&G, will have an unfair advantage in the Brazilian hair care / hair color sector.
“The combined effect of these transactions will substantially change the Brazilian cosmetics and personal care industries,” according to legal documents circulating in the matter.