Nestlé S.A. has agreed to reduce its stake in L’Oréal SA in a $10 billion deal that allows the world’s biggest packaged-foods maker to capitalize on a rally in the French beauty giant’s share price.
The maker of Nescafé coffee and Purina petfood said it would sell 22.26 million L’Oréal shares back to the French company, paring its stake to about 20% from 23%. Nestlé will use the proceeds to help fund its own 20 billion Swiss francs, approximately $21.6 billion, share-buyback program.
