Swiss food and drink giant Nestle and French cosmetics company L'Oreal have approved a deal to transfer ownership of Swiss dermatology pharmaceuticals company Galderma.
The companies say L'Oreal will buy 48.5 million of its own shares, or 8 per cent of its share capital, from Nestle and give Nestle its 50 per cent 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 on Tuesday Nestle's stake in L'Oreal will be reduced from 29.4 per cent to 23.29 per cent of the share capital and the Bettencourt Meyers family's stake in L'Oreal will increase from 30.6 per cent to 33.31 per cent.
Nestle says it is creating a new unit, Nestle Skin Health SA, that will be run by Galderma's management.
