On Friday, Shiseido Co. shared that it is looking to acquire San Francisco-based Bare Escentuals Inc., in a deal which will cost the former a whopping $1.7 Billion, and will be a step forward in the giant Japanese cosmetics maker's plan to expand its global presence.

As per the terms of the deal, all outstanding shares of the company will be purchased by Shiseido for $18.20 per share, which is 43% more than the company's latest closing price recorded on NASDAQ.

It has been reported that the transaction, which is the Japanese company's biggest acquisition ever, has been approved by boards of both the firms.

Post the takeover, Bare Escentuals will continue to operate as a separate unit of Shiseido under its present leadership.

"Together with Shiseido, we look forward to bringing our mineral-based beauty products to even more women worldwide. This acquisition further enables Shiseido to move toward our goal of becoming a global player", said Bare Escentuals Chief Executive Leslie Blodgett.

Investors across both countries have been delighted by the news.