The world’s largest cosmetics group L’Oreal announced the repurchase of shares of 8% of the Group’s holding the hands of the Swiss company Nestle. The acquisition is no need to use L’Oreal held Sanofi (Sanofi) pharmaceutical companies. The strategic acquisition of the Shares relates 48500000.L’Oreal and Nestle said in a joint statement, the two groups met the previous day when the board unanimously adopted the acquisition agreement.
To raise funds, L’Oreal will hold 50% of the sale of high beauty (Galderma) shares plus € 3.4 billion in cash. High beauty company L’Oreal and Nestle is a joint venture company established a market capitalization of 3.1 billion euros. Both sides adopted the L’Oreal Group’s average share price between 11 November 2013 to February 2014 10 Date, ie € 124.48 in the calculation of the transaction amount.
You can buy fashion accessories or Shop fashion accessories on online stores for better deals.Repurchased shares will be canceled, which will allow the family to the L’Oreal Group founder, Petain shares increased from 30.6% to 33.1% held by the ancient family. Instead, Nestle shares fell by 29.4% to 23.29%, which led to it by the L’Oreal Group’s three board seats to 2 people. The transaction will be finalized at the end the first half. Nestle and the Bettencourt family decades ago had signed a pre-emption agreement other options. However, the agreement will expire in April this year. So the market has always been expected to be a similar transaction agreement. L’Oreal stressed that the acquisition held without use of Sanofi Group (Sanofi) pharmaceutical companies. Since the acquisition of the “cash” portion of the Group’s own funds and by issuing short-term bonds to raise. Therefore, if necessary, the French L’Oreal Group still has the ability to acquire the remaining shares held by Nestle’s hands again. Swiss Nestle said, “Although underweight L’Oreal shares, but Nestle will continue to cooperate more than 40 years, this company’s development assistance.” “To this end, Nestle and the Bettencourt family will work together to re-adjust the original agreement will continue to adapt to new circumstances.”