L'OREAL'S BOARD APPROVES PURCHASE OF STOCK IN LICENSEE COSMAIR USA

PARIS--The L'Oreal board of directors approved the acquisition of shares of its U.S. licensee Cosmair USA on Thursday, completing the first of two steps in a plan for the cosmetics giant to gain more control of its worldwide licensees.
Under terms of the deal, which was announced in April, the shares were transferred through Gesparal, a L'Oreal holding company. L'Oreal also acquired shares of its Swiss licensee Lorsa/Fagel, its Spanish licensee Procasa and Cosmair Canada.
In return, Gesparal, which is owned by Liliane Bettencourt and Nestlé SA, received 2.61 percent of L'Oreal, increasing its stake in the company to 53.65 percent.
In the second phase of the deal, Nestlébillion (8.79 billion French francs) to acquire the will sell L'Oreal its stakes in the licensees.
In all, L'Oreal will have spent about $1.55controlling interests.
L'Oreal also announced that it will convene a special meeting of shareholders on Thursday, Sept. 22, to approve the stock transfer.

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