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Switzerland/France: Nestle, L’Oreal tie-ups get rearranged

By  |  February 12, 2014

Swiss-based confectioner Nestle is reportedly reducing its grip on France beauty product maker L’Oreal, reports say, as L’Oreal plans to buy back some of its shares.

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    To finance the re-acquisition of the stock, L’Oreal will reportedly divest its 50 percent stake in Swiss dermatology pharmaceutical Galderma; the company is a joint venture between Nestle and L’Oreal. Nestle will pay L’Oreal about $4.2 billion for the sale.

    An additional $4.6 billion of the deal will be paid in cash by L’Oreal.

    The shake-up in L’Oreal and Nestle’s partnership will also result in a reduction of Nestle representatives on the L’Oreal board, from three to two directors.

    Competition authorities will need to clear the planned transactions.

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