L'Oreal preferred bidder for stake in Nanda

SEOUL, Apr 10 (Reuters): French cosmetics group L'Oreal SA has been picked as the preferred bidder to buy 70 per cent of South Korean fashion and cosmetics firm Nanda, in a deal estimated at 400 billion won ($375 million), Korea Economic Daily reported on Tuesday, citing investment banking sources.

The deal would make L'Oreal the latest foreign investor to bet on continued demand for Korean beauty products in Asian markets such as China, backed by the popularity of Korean pop culture.

The proposed purchase from Nanda's founder is aimed at strengthening L'Oreal's presence in the Chinese make-up market, the newspaper said. UBS is managing the deal, it said.