L’Oréal sells back stake in Sanofi for US$3B but remains influential
L’Oréal has reached an agreement to sell 2.3% of its shares in Sanofi back to the company to “optimize” the group's balance sheet. The transaction also comes as part of Sanofi’s share buyback program, which was announced last month .
The acquisition agreement will see L’Oréal relinquish approximately 29.6 million of its shares in Sanofi for €101.50 (US$105.77) per share. The deal resulted in a total of US$3 billion.
The global beauty giant has been a long-standing shareholder in Sanofi, an immunology health care company specializing in vaccine production, and will continue to play a substantial role as an investor in the business.
“L’Oréal has been a trusted shareholder and partner for decades, playing a key role in supporting Sanofi’s growth and transformation,” says François Roger, Sanofi's chief financial officer.
“This transaction highlights Sanofi's dedication to sustainable value creation while upholding our strategic priorities and preserving the strength of our key partnerships.”
After the shares are canceled and treasury shares are excluded, L’Oréal will continue to be one of the drug company’s largest shareholders, owning 7.2% of Sanofi and 13.1% of voting rights.
”As a loyal and key shareholder we will continue to support the development of Sanofi and are confident in the prospects of the company,” adds Mr. Christophe Babule, chief financial officer at L’Oréal.
L’Oréal means business
L’Oréal says it is a constantly evolving organization with a global industrial presence, bringing market innovations to the market “quickly and efficiently.” The Sanofi repurchase agreement sees its next strategic move as “further diversifying the group’s financing sources.”
Sanofi works in immunology health. In recent years, the sector has witnessed other high-profile moves and acquisitions linked to L’Oréal. The beauty company disclosed in December 2024 that they would be offloading Decléor and Saint-Gervais Mont Blanc to the French group Cospal.
At the time of the announcement, L’Oréal explained in a statement: “L’Oréal has a portfolio of complementary brands. The group’s strategy is to acquire and, sometimes, exit brands to keep a very strong portfolio and the complementarity it needs to thrive over the long term.”
The move comes as L’Oréal seizes the opportunity for global expansion in growing markets such as India. According to the company, 170 million people are set to join the middle class in India by 2030, providing a chance to grab the attention of a new mass audience.
Additionally, L’Oréal’s recent investments include acquiring a 10% stake in Galderma Group, a company specializing in injectable aesthetics, dermatological skin care, and therapeutic dermatology. This move aims to enhance their visibility in the growing aesthetics market.
