THE WHAT Nestlé has reduced its stake in L’Oréal by selling €8.9 billion (US$10 billion) worth of shares to L’Oréal for €400 a share.
THE DETAILS The sale trims its stake in French beauty giant to 20.1 percent, with Nestlé remaining fully supportive of the company’s value creation strategy.
Nestlé aimed to keep its percentage above 20 percent, down from 23.3 percent.
According to a press release, “The Nestlé Board of Directors has decided to replace the existing share buyback program with a new plan which is expected to commence on January 3, 2022. Under this new program Nestlé plans to repurchase CHF 20 billion of its shares over the period 2022 to 2024. The company expects to buy around CHF 10 billion of shares in the first twelve months. The new program is subject to the necessary regulatory approvals.”
Following the sale, the Bettencourt Meyers family’s stake in L’Oréal will increase from 33.3 percent to 34.7 percent. The family has received a waiver from the French stock market regulator to avoid a public offering for the company, despite crossing the company ownership threshold of a third.
THE WHY The news follows years of pressure on Nestlé from investors and analysts for the company to sell its shares, with activist investor Third Point pushing for a sale in 2017. Nestlé will retain its two positions on the L’Oréal Board of Directors
Aesthetic medicine products are developed and regulated to meet stringent safety and efficacy standards. They are typically administered by trained healthcare professionals such as dermatologists, plastic surgeons, and specialized nurses in clinical settings. These products aim to provide effective solutions for cosmetic enhancement, skin rejuvenation, and overall aesthetic improvement, contributing to both physical appearance and self-confidence.
Key categories of aesthetic medicine products include:
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Injectables: This category includes products such as dermal fillers, botulinum toxins (e.g., Botox), and collagen stimulators. These injectables are used to smooth wrinkles, add volume, and improve facial contours.
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Skin Rejuvenation Treatments: Products like chemical peels, microdermabrasion systems, and laser devices are used to improve skin texture, reduce pigmentation irregularities, and enhance overall skin tone.
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Skincare Products: These include medical-grade cleansers, moisturizers, serums, and topical treatments containing active ingredients like retinoids, antioxidants, and growth factors. They are formulated to address specific skin concerns such as acne, aging, and hyperpigmentation.
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Hair Restoration Products: Medical treatments and products designed to promote hair growth and treat conditions such as male and female pattern baldness.
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Body Contouring and Fat Reduction: Devices and products used for non-surgical body sculpting, such as cryolipolysis (cool sculpting) devices and injectable lipolytics.
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Cosmeceuticals: High-performance skincare products that bridge the gap between cosmetics and pharmaceuticals, often containing potent ingredients with proven clinical benefits.
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Wound Care and Scar Management: Products like silicone sheets, gels, and advanced wound dressings used to improve healing and reduce the appearance of scars.
