Henkel and Coty Submit Binding Bids for P&G Assets

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CEO Kasper Rorsted delivers a speech during the annual shareholders meeting in Duesseldorf

Henkel & Co. and Coty Inc. made binding offers to buy separate parts of Procter & Gamble's beauty businesses worth up to a total of $12 billion, according to numerous media reports.

P&G is in the process of selling off several beauty brands, and recently sold Frédéric Fekkai to a joint venture between Designer Parfums and Luxe Brands.

The bids, submitted on Monday, bring P&G one step closer to shedding several assets it considers non-core, as its chief executive officer, A.G. Lafley, presses on with his cost-cutting strategy.

Henkel made an offer for P&G's haircare business, and Coty submitted bids for P&G's fragrance unit and its cosmetics business.

Buyout firm Clayton Dubilier & Rice LLC also submitted a bid for P&G's cosmetics business, which includes drugstore brands CoverGirl and Max Factor and could fetch around $3 billion.

Warburg Pincus LLC is also interested in P&G's cosmetics business as well as its fragrance unit, which could fetch around $2 billion, including brands like Hugo Boss and Gucci.