PARIS -- French cosmetics giant L'Oreal announced Thursday its intention to acquire all the shares of Magic Holdings International Limited, a Chinese facial care firm, the French company said.
Six key shareholders of the Magic Holdings, representing 62.3 percent of the company's equity, are in favor of L'Oreal's proposal, L'Oreal said in a statement.
The proposed price for the deal is HK$6.30 ($0.81) per share, with a total of HK$6.53 billion ($842 million).
The transaction is subject to the approval of China's Ministry of Commerce, the French conglomerate said.
Listed on the Hong Kong Stock Exchange, the Chinese cosmetic facial mask producer's turnover in 2012 was approximately 150 million euros ($200.19).
"Relying on Magic's highly talented management team, L'Oreal intends to develop this Chinese brand by contributing its science-based expertise, and using its advanced and applied research in China and across the world," the French group said.
Operating in China since 1997, L'Oreal has a Research and Innovation center in Shanghai and two plants in Suzhou and Yichang.
As the world's leading beauty company, L'Oreal has built a unique portfolio of 27 international, diverse and complementary brands, with sales hitting 22.5 billion euros ($30 billion) in 2012.