Nestle Buying Out Galderma From L'Oreal
GENEVA (AP) -- Swiss food and drink giant Nestlé and French cosmetics company L'Oréal have approved a deal to transfer ownership of Swiss dermatology pharmaceuticals company Galderma.
The companies say L'Oréal will buy 48.5 million of its own shares, or 8 percent of its share capital, from Nestlé and give Nestlé its 50 percent stake in Galderma, which has been a 50/50 joint venture between them.
Under the deal, which is subject to regulatory approval, the companies said Tuesday that Nestlé's stake in L'Oréal will be reduced from 29.4 percent to 23.29 percent of the share capital and the Bettencourt Meyers family's stake in L'Oréal will increase from 30.6 percent to 33.31 percent.
Nestlé says it is creating a new unit, Nestlé Skin Health SA, that will be run by Galderma's management.