Henkel and Coty are reported to have submitted bids worth US$12 billion for Proctor & Gamble’s beauty businesses, according to an exclusive report published by Reuters this morning.

On the back of information from a secret source, the news agency claims that Henkel has made an offer for the FMCG giant’s hair care business, which includes the Wella and Clairol brands, valued at between US$5 billion and US$7 billion.

If Henkel’s bid is successful, it could have dramatic consequences for rival L’Oréal, who currently holds the number one spot in the global salon hair care market, as reported by Global Cosmetics News on Friday.

Meanwhile Coty has submitted a tender for P&G’s cosmetics and fragrance unit, valued at US$3 billion and US$3 billion respectively.

Several private equity firms are also said to have submitted bids in the auction.