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- Nestlé (OTCPK:NSRGY +1.8%) will reduce its L'Oreal (OTCPK:LRLCF) stake to 20.1% from 23.3% after it sells shares worth $10B back to the French beauty company.
- L'Oréal will pay €400 per share ($453) and says that the deal will have accretive affect on EPS of at least 4% over the next year. The cosmetics maker will pay with a combination of cash and debt.
- In addition, Nestlé announces that it will end its current share buyback program after repurchasing shares worth 12.7B swiss francs ($13.8B).
- Nestlé first became a shareholder in L'Oreal in 1974. In 2014, the company reduced its holdings in the company from 33% but has retained its shares until now despite pressure from activist investor Third Point.