OREANDA-NEWS. Fitch Ratings says in a new report that the emergence of Coty Inc (Coty) as a larger player in the global beauty industry once it completes in 2016 its merger with Procter & Gamble's (P&G) higher-end beauty brands, is unlikely to sufficiently affect the competitive landscape or alter the growth prospects or profits for EMEA-based personal care companies L'Oreal SA (F1+), Henkel AG & Co. KGaA (A/Stable) and Unilever PLC/NV (A+/Stable).

Fitch also believes it is unlikely that the creation of the new Coty would trigger further transformational M&A in the sector or to affect the current ratings of L'Oreal, Unilever or Henkel.

However, beyond the emergence of a stronger Coty, the global home and personal care sectors could see further transformation. Fitch believes that P&G is under increasing shareholder pressure to divest more assets or break up its four divisions of baby, feminine and family care; fabric and homecare; beauty; and health & grooming. In the event of a break-up of P&G, large international home and personal care assets could become acquisitions targets.

The report discusses the profile of the new player Coty compared with its EMEA-based peers in the different categories of the global beauty industry, the extent to which profit margins could be affected, trends in the different beauty categories as well as the acquisition capacity of EMEA-based personal care players at their current rating level.

The report, P&G/Coty Deal: Reshaping the Competitive Landscape in Consumer Products, is available on www.fitchratings.com.