According to a statement by Japan hair and cosmetics company Shiseido on Thursday, the company had been exclusively talking with L'Oreal regarding the former's divestment of two of its skincare brands. Shiseido added that skincare brands Decleor and Carita were planned to be acquired by L'Oreal in a EUR230 million or USD314.3 million deal subject to standard adjustments upon closing.

In a separate statement, L'Oreal said it foresaw Decleor and Carita to have growth prospects internationally. Decleor and Carita was said to have generated combined annual sales of around EUR100 million last year. L'Oreal confirmed an agreement to acquire the brands could be signed in the next few weeks.

L'Oreal had been making strategic steps to capitalize in the growing USD15 billion skincare market in mainland China. It recently bought Chinese facial mask provider Magic Holdings. On the other hand, Shiseido saw itself struggling in the skincare market recently. It recorded its annual loss, a first in its eight-year existence as a major Japanese cosmetic company.