Nestlé announced today that it has agreed to sell 22.26 million shares of L’Oréal to L’Oréal for € 400.00 per share, for a total price of CHF 9.3 billion.
L’Oréal will cancel the acquired shares, according to Nestlé in a statement.
Following the transaction, Nestlé will own 20.1% of L’Oréal, while continuing to fully support the company’s strategy. Nestlé will retain its two seats on L’Oréal’s Board of Directors.
New share repurchase program
At the same time, the Board of Directors of Nestlé decided to replace the existing share repurchase program with a new plan that is expected to start on January 3, 2022.
As part of this new program, Nestlé plans to repurchase CHF 20 billion of its shares between 2022 and 2024. The company expects to purchase approximately CHF 10 billion in shares in the first 12 months. The new program is subject to the necessary regulatory approvals.
As a result, the company’s existing share repurchase program is expected to end on December 31, 2021. By December 7, 2021, Nestlé has repurchased 120,289,800 shares for a total of CHF 12.7 billion with an average price of CHF 105.61 , almost two-thirds of the expected volume in the current program of CHF 20 billion.
Nestlé’s Board of Directors and CEO reaffirm their commitment to continue investing in the company’s core food, beverage and nutritional health activities. In case of significant acquisitions, the new share repurchase program starting on January 3, 2022 will be adjusted accordingly. The volume of monthly share acquisitions will depend on market conditions, the company said in a statement.
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Source From: Capital
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