PARIS – Nestlé is keeping its options open regarding its stake in L’Oréal.
The French beauty giant’s second-largest shareholder after the Bettencourt family wrote in its annual review, published Tuesday: “The board continuously monitors the returns and strategic options of our financial investment in L’Oréal.”
In September 2018, the Swiss food and drink conglomerate first said that it was exploring strategic options for its 23.3 percent stake in L’Oréal.
As part of a shareholder agreement with the Bettencourt family, Nestlé has been free to sell its shares in L’Oréal since April 2014. In February 2018, Nestlé said its board decided not to renew its shareholder agreement.
“We do not intend to increase our stake in L’Oréal and are committed to maintaining our constructive relationship with the Bettencourt family,” it explained in a statement at the time.
Nestlé has cleared the beauty category from its own portfolio. In October 2019, the group sold its Skin Health business, which was renamed Galderma, to a consortium including EQT, PSP Investments and a subsidiary of the Abu Dhabi Investment Authority in a deal worth 10.2 billion Swiss francs, or $10.38 billion.