PARIS — L’Oréal said Tuesday it has completed the acquisition of 48.5 million of its own shares from Nestlé and the disposal of its 50 percent ownership in Galderma to the Swiss multinational.
The French beauty giant said the shares it acquired have been immediately canceled.
The complex transaction reduced Nestlé’s stake in L’Oréal to 23.29 percent of the share capital from 29.4 percent, and increased the share held by the Bettencourt Meyers family to 33.31 percent from 30.6 percent.
Nestlé paid for Galderma, for an enterprise value of 3.1 billion euros, or $4.22 billion at current exchange, via 21.1 million L’Oréal shares. For the remaining 27.3 million shares, L’Oréal paid 3.4 billion euros, or $4.63 billion.
Nestlé’s number of representatives on L’Oréal’s board has been reduced to two from three after the resignation of Paul Bulcke, Nestlé’s chief executive officer.
“The ownership ceiling provisions of the shareholders’ agreement between Nestlé and the Bettencourt Meyers family now apply to their respective new holdings,” said L’Oréal in a statement. “The transaction will be accretive by more than 5 percent on L’Oréal earnings per share on a full-year basis.”