L’Oréal sells back 2.3% Sanofi stake for USD 3B

FRANCE—L’Oréal, a French multinational company specialising in personal care products, has agreed to sell 2.3% of its shares in Sanofi, an immunology healthcare company specialising in vaccine production.

This transaction aims to optimise L’Oréal’s balance sheet and diversify its financing sources.

L’Oréal has agreed to sell approximately 29.6 million of its shares in Sanofi at €101.50 (USD 105.77) per share as part of the acquisition agreement.

The deal amounted to a total of USD 3 billion.

François Roger, Sanofi’s chief financial officer, said, “L’Oréal has been a trusted shareholder and partner for decades, playing a key role in supporting Sanofi’s growth and transformation.”

“This transaction highlights Sanofi’s dedication to sustainable value creation while upholding our strategic priorities and preserving the strength of our key partnerships.”

Following the cancellation of shares and exclusion of treasury shares, L’Oréal will remain one of Sanofi’s largest shareholders, holding a 7.2% stake and 13.1% of voting rights in the company.

As a longstanding shareholder in Sanofi, the company promises to maintain a significant role as an investor in the business.

 Mr. Christophe Babule, chief financial officer at L’Oréal, stated, “As a loyal and key shareholder, we will continue to support the development of Sanofi and are confident in the prospects of the company.” 

L’Oréal describes itself as a continuously evolving organization with a global industrial presence, committed to bringing market innovations “quickly and efficiently.” 

According to Sanofi, the repurchase agreement is a strategic step toward further diversifying the group’s financing sources.

The decision aligns with L’Oréal’s strategy to capitalise on global expansion opportunities in fast-growing markets like India.

L’Oréal projects that 170 million people will enter India’s middle class by 2030, presenting a significant opportunity to capture a new mass consumer base.

Recently, L’Oréal Groupe has entered into a long-term, exclusive beauty partnership with Jacquemus, a Paris-based fashion label.

This partnership is further solidified by L’Oréal’s minority investment, which aims to support Jacquemus’ development.

This deal follows L’Oréal’s Miu Miu beauty license acquisition. 

By taking over the brand’s beauty business from Coty, L’Oréal continues to expand its portfolio and strengthen its position in the luxury beauty market.

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