A leading Chinese skincare firm is set to be bought by L'Oreal, the two companies have announced in a joint statement.
Magic Holdings, which is listed on the Hong Kong Stock Exchange, is the subject of a bid worth $6.5 billion Hong Kong dollars (£539 million) from L'Oreal.
Though the two firms expect the deal to go through without any problems, the sale will need to be approved by the Chinese Ministry of Commerce before it can go ahead.
Shares of Magic surged by more than 20 per cent during today's (August 16th) trading on the back of the takeover bid being announced by the firm.
L'Oreal, which owns brands such as Garnier and Lancome under it, is making the move into the Asian market in order to take advantage of the growing demand for luxury products in China.
Stocks in L'Oreal are also up in the early moments of trading on the Paris stock exchange this morning, recording a 0.5 per cent rise in value by 08:20 BST.
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