Procter & Gamble
Marc Pritchard, global brand building officer of Procter & Gamble (P&G), speaks at a news conference by the companyReuters

US-based beauty products and fragrance manufacturer Coty has outbid other buyers to acquire three businesses from Procter & Gamble at about $12bn (£7.7bn, €10.7bn), according to media reports.

The company has won auctions to purchase P&G's hair-care, fragrance and cosmetics businesses, expanding its product portfolio.

The deal was first reported by the New York Post. Sources of the newspaper said P&G alerted Coty over the weekend that it had won the auction and has begun calling the losing bidders to inform them. They also cautioned that the outcomes could still change as the deals were not finalised.

Both P&G and Coty declined to comment on media reports.

Coty is known for its Calvin Klein and Marc Jacobs fragrances, New York Color cosmetics and nail polish brand OPI and Rimmel mascara. The company, which has a market capitalisation of $9.39bn, has been looking to acquire more products in order to join the big firms in consumer care.

Reuters earlier reported that Henkel and Coty, both of which have personal care and cosmetics businesses, made binding offers to buy separate parts of P&G's beauty businesses. Private equity firm, KKR has also reportedly bid on P&G's hair-care business.

Consumer goods giant P&G has been looking to sell several non-core assets as part of a cost-cutting strategy.

In August, the company announced a plan to sell off 80 to 100 non-core product lines that account for about 10% of its total revenue and focus on about 80 brands that generate most of the revenues.

The core brands, which represent about 90% of the company's sales and more than 95% of profit in recent years, include Tide detergent, Crest toothpaste and Pampers diapers.

In line with the plan, the company earlier sold its pet-food businesses to Mars Inc and Spectrum Brands Holdings.

In addition, it announced the sale of its battery unit Duracell to Warren Buffett's Berkshire Hathaway in November.