L'Oreal has announced the acquisition of an 8% share of its capital currently held by Nestlè. The "strategic transaction" project concerns 48.500 shares and has already been approved by the boards of both companies, which issued a joint statement. The cost of the operation is around 6 billion euros: the repurchase price is 124,48 euros against the 129 euros of yesterday's closing.
The payment will take place partly in cash (for 3,4 billion euros) and partly through the transfer from L'Oréal of 50% of Galderma, the joint venture set up with Nestlé in the dermatology sector (estimated in a range between 2,6, 3,1 and XNUMX billion). The repurchased shares will be cancelled.
This decision will have an accretive impact on L'Oréal's results by 5% in the first year, as well as increase the share within the cosmetics company of the brand's founding family, the Bettencourts, which will see their stake rise from 30,6 % to 33,1%, while Nestlé will drop from 29,4% to 23,29%.
