Reliance considers buying out cosmetic firm Revlon in US: Report

Oil-to-retail conglomerate Reliance Industries is considering buying out Revlon in the United States, days after the cosmetics giant filed for bankruptcy, ET Now reported on Friday, citing sources.

The report comes as Revlon filed for bankruptcy earlier this week after global supply chain disruptions drove up raw material costs and prompted vendors to demand upfront payments.

Reliance has pushed its way into the fashion and personal care space in recent months as it diversifies away from its mainstay oil business. It has already established a foothold in telecom and retail sectors.

Shares of Revlon jumped 20 per cent to $2.36 in premarket trade following the report. Reliance was up 1.9 per cent in the Mumbai market.

Reliance and Revlon did not immediately respond to Reuters' requests for comment. 

Reliance has been in an acquisition spree of late. The company, along with Apollo, is looking to bid for UK pharmacy chain Boots. Earlier this year, the firm had also bought a stake in Dunzo. 

Meanwhile, cosmetics maker Revlon has filed for bankruptcy, falling victim to global supply chain disruptions that pushed up raw material costs and prompted vendors to demand upfront payments.

Known for its nail polishes and lipsticks, the 90-year-old company in recent years has lost shelf space and sales to startups backed by celebrities such as Kylie Jenner's Kylie Cosmetics and Rihanna's Fenty Beauty.

In its bankruptcy filing, Revlon said supply chain disruptions in the spring prompted intense competition for ingredients used to make its products.