Forest chemical industry company Fujian Green Pine [300132:CH] planned to acquire a 90% stake in cosmetics supplier Nox Bellcow (NBC) for RMB2.43bn, as reported by jrj.com on November 8. According to Green Pine, the deal is a crucial step for the company to promote its industry chain and seek new business development opportunities. In addition, the company will also improve the processing techniques of turpentine, a resin from live trees, and design more turpentine-based skin care products and wet tissue.
Nox Bellcow supplies makeups for China's cosmetics retail chain such as Watsons and Herborist, using its research teams and production bases. Green Pine's initiative of acquiring Nox Bellcow indicates the company's ambition to own an independent makeup production chain. Prior, Green Pine mainly worked with cosmetic and medical enterprises as a technology supplier. According to chyxx.com, China’s cosmetics market scale reached RMB33.39bn in 2016 with a growth rate of 8% YoY, becoming the second largest market after the US. Currently, the skin care products market accounted for 51% of China’s cosmetics market.