L'Oreal will pay 300 pence a share for Body Shop, which will be maintained as a separate entity and continue to be led by its current management team, the French firm said in a statement.

The offer price is 31,5 per cent higher than Body Shop's average share price over the six months before February 21, the last day before speculation of a bid emerged, the companies said in a statement.

Body Shop directors holding about 21,6 per cent of share capital - including company founders Anita and Gordon Roddick with 18 per cent - have accepted the offer.

- Nampa-AFP

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