French beauty products giant L'Oreal said yesterday it has a signed a contract to sell The Body Shop, which it has owned for over a decade, to Brazil's Natura Cosmeticos for one billion euros ($1.1 billion). L'Oreal said in a statement that it signed the contract after getting the nod of approval from its works council.

Nevertheless, "the proposed sale is subject to clearance by anti-trust authorities notably in Brazil and in the United States, and expected to close during 2017," the statement added. The two sides had announced on June 9 that they were entering into exclusive negotiations regarding the sale of British-based The Body Shop, founded in 1976 and specializing in natural beauty products.

Founded by the late Anita Roddick, The Body Shop saw huge growth rates with an ethical approach to cosmetics, notably by ruling out animal testing, and campaigning on social and environmental issues.