L'Oreal set to buy skincare company Magic Holdings

A L'Oreal showcase in a shopping mall in Xuchang, Henan province. The French cosmetics giant's acquisition of Magic Holdings International Ltd is expected to close during the second quarter of this year. Geng Guoqing / for China Daily

French cosmetics giant L'Oreal SA said on Monday it acquired Hong Kong-listed skincare company Magic Holdings International Ltd, adding that the deal has been approved by China's Ministry of Commerce.

The move comes one week after L'Oreal announced that its brand Garnier would stop selling its products in the country.

A document, which will provide further information about the deal, will be sent to Magic's shareholders in due course, L'Oreal said in a statement. The transaction is expected to close during the second quarter of this year.

Magic's facial mask brand MG is a good match for L'Oreal's consumer products division in China, L'Oreal said. By adding a major Chinese brand with a unique expertise to its portfolio, the consumer products division will be able to further accelerate its conquest of new consumers in the strategic Chinese market, it added.

Magic's turnover in the 2012-2013 fiscal year was about 160 million euros ($218 million).

Chinese consumers seem to be eager buyers of facial mask products, especially online shoppers, industry observers said.

According to a recent report from digital audience analytics firm ComRatings and market research firm Nielsen, the facial mask category is the most popular in the cosmetics sector, with 92 percent of online shoppers buying it, followed by moisturizers, facial cleansers, eye cream and lip care products.