Coty’s shares fell 6 percent in early trading after the widely expected deal, while P&G was up 0.6 percent.
In a tax-efficient deal designed as a “Reverse Morris Trust” transaction, P&G will separate 43 of its cosmetics, fragrance and haircare brands and fold them into Coty.
The deal is a game-changer for Coty as it adds popular brands such as Wella and Clairol hair color products and Cover Girl and Max Factor make-up to its portfolio of perfume brands that include Marc Jacobs and Calvin Klein.