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Nestlé considering options for L’Oréal stake
Posted on Tuesday, 24 March 2020 12:44
Swiss consumer goods giant Nestlé has said it is continuously monitoring its shareholding in French cosmetics player L’Oréal and considering strategic options for the stake.
The company did not disclose whether it was likely to divest the holding, or when a deal could take place if it does.
Nestlé currently owns 23.3 per cent of L’Oréal.
This is not the first time the Swiss company has been linked with an asset sale in recent months; in December, it agreed to offload its ice cream business in the US to Fronieri, a joint venture formed by the group and R&R Ice Cream.
Under the terms of that deal, the buyer committed to pay USD 4.00 billion for the unit.
Completion was subject to regulatory approvals and was originally slated to occur during the first quarter of this year.
Nestlé Global chief executive Mark Schneider said the transaction was in line with the company’s plans to become a world leader in the ice cream segment.
Following that deal, it announced the planned sale of 60.0 per cent stakes in Herta’s dough and charcuterie businesses to Casa Tarradellas at an estimated deal valuation of EUR 414.00 million.
Nestlé will retain the balance of the units and operate them as a joint venture following closing, which is expected within the first half of this year.
The decision to sell came following a strategic review of assets, but it is unknown whether the anticipated completion dates are likely to be affected by the global Covid-19 outbreak.
Zephyr, the M&A database published by Bureau van Dijk, shows the largest deal targeting a manufacturer of toilet preparations to have been announced worldwide during 2019 was worth USD 4.23 billion.
That transaction saw Natura Holding agree to pick up Avon Products. Terms were agreed in May and the deal closed in early January 2020.
© Zephus Ltd