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The French firm is offering a HK$6.30-per-share deal to Magic.
Market research firm Nielsen says Magic Holdings had a 26% market share in 2012 in China.
China’s $15 billion skin care market is an attractive destination for foreign firms.
Magic Holdings Chairman Stephen Tang has welcomed the L’Oreal offer in a joint statement.
“Six key shareholders, representing 62.3 per cent of the company’s equity, are already committed to supporting L’Oréal‘s proposal,” the French company said in the statement.
“Facial masks are one of China’s beauty market’s fastest-growing areas with very promising development prospects,” L’Oreal said.
The deal would need approval from China’s Ministry of Commerce.