The Brazilian rival could be looking at Avon, which split itself up into three separate companies in 2016. The New-York based company retained 20% of its North American business when it sold 80% of it to private-equity firm Cerberus Capital in 2015. Its London-based arm is publicly traded. The deal would reunite these three offshoots.
Natura denied in a filing last September that it was in talks to buy Avon, Bloomberg noted.
Natura purchased the Body Shop in 2017.
"We don't comment on speculation but we believe in the turnaround strategy that we have articulated to investors," a spokesperson for Avon said in an email to the Journal. "We are focused on executing our plan and driving long-term value for our shareholders."
Shares of Avon gained 5.8% to $2.94. The stock has a market cap of $1.23 billion and 52-week range of $1.30 to $3.41.
The average rating on the stock is overweight a with a price target of $2.71, according to FactSet.
The cosmetics maker and pioneer of direct-sale has nine analysts following it on FactSet. Their ratings include two buys and six holds.