The French giant is cashing in on Sanofi. L'Oréal has reduced its stake in Sanofi from 9.5% to 7.2% in order to strengthen its balance sheet after its recent acquisitions in biotech and Korean cosmetics companies.
Sanofi's historical shareholder, L'Oréal, has sold its 2.3% stake to Sanofi for as much as 3 billion euros and Sanofi has already announced a share buyback plan worth 5 billion euros.
L'Oréal stressed that it remains a major shareholder in Sanofi and that it fully supports the pharmaceutical company's value creation strategy.
The French cosmetics group said the deal will help optimise the company's balance sheet following its recent acquisitions and will further diversify the group's sources of financing.
Christophe Babule, L'Oréal's chief financial officer, explained: ‘We are delighted to announce this transaction. We are confident in the relationship that has been built up between L'Oréal and Sanofi over more than 50 years, and we will continue to support Sanofi's development as a loyal and key shareholder and are confident in the company's prospects’.
For his part, François Roger, Sanofi's Chief Financial Officer, thanked L'Oréal for its confidence as a shareholder who has been involved in Sanofi's development and growth.