L’Oréal is set to sell The Body Shop to Natura for €1 billion, according to a report published by Market Watch.

The French beauty behemoth chose the Brazilian naturals company as the winning bidder in the auction for the ethical cosmetics firm on Friday and expects the deal to close later this year, subject to regulatory approval in Brazil and the US.

Natura’s bid beat those prepared by investment groups CVC Capital Partners and Investindustrial as well as a last-minute entry from China’s Fosun Group.  

“The ethical values and expertise of Natura make it the perfect new owner for The Body Shop to accelerate the rejuvenation of the brand and its future expansion,” said Jeremy Schwatz, Chairman and CEO of The Body Shop.