Nestlé's participation in L'Oréal has been beneficial to both companies for many years. L'Oréal knows that it has the full support of its two biggest shareholders, Nestlé and the Bettencourt family, whilst Nestlé has benefited from the significant increase in the long term value of its investment. Moreover, Nestlé and L'Oréal have benefited from their cooperation through two successful joint ventures – Galderma and Laboratoires innéov as well as joint efforts in Research.
The terms of the agreement (French, pdf, 563 Kb) between Nestlé and the Bettencourt family are public. The principal terms are that the Parties cannot increase their stake in L’Oréal during the lifetime of Mrs. Liliane Bettencourt and six months after that. As of April 29, 2009, the Parties are free to sell their shares, each of them having conceded the other a first right of refusal until April 29, 2014. After that date, the Parties are free to offer the shares to any third party.
The future of Nestlé's participation in L'Oréal is an important topic for the Group which the Nestlé Board of Directors is addressing with great attention in the framework of the Group's global nutrition, health and wellness strategy. Nestlé will continue to take a long-term strategic view in shareholders' best interest, and will, when appropriate, make its decisions in a way that is most conducive to the long term success of the Company.
This text in other languages: Français (pdf, 35 Kb) | Deutsch (pdf, 65 Kb)
Read more in the 2004 press release: Nestlé-L'Oréal Relationship Put on a New Basis
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