Fosun Should Find Better Takeover Target Than The Body Shop, Analyst Says

Chinese conglomerate Fosun International should discontinue its efforts to secure the rights to buy The Body Shop, the beauty retailer owned by L'Oreal SA. There are several reasons why Fosun would be better off looking for another company to acquire. These include the lack of positive forecasts for the retail sector, including the beauty retail segment. Also, The Body Shop's emphasis on all-natural beauty products no longer differentiates it from rival retailers, as reflected by the 4.8 percent drop in revenue in 2016. With a price tag of $900 million, which is expected to significantly jump once a likely bidding war starts, The Body Shop is quite expensive.