L’Oréal sells €3 billion of Sanofi stock back to pharmaceutical group

By Amanda May | Published: 3-Feb-2025

The beauty giant said the transaction – selling approximately 29.6 million of its Sanofi shares for €101.5 per share – will ‘optimise’ the group’s balance sheet

L’Oréal is selling a 2.3% stake in Sanofi – approximately 29.6 million of its Sanofi shares – back to the drugmaker for a total consideration of €3bn.

The French beauty giant has agreed to sell these shares to Sanofi for €101.5 per share, which is a 2.8% discount to where Sanofi shares closed on 31 January.  

“The transaction will optimise L’Oréal’s balance sheet, notably following its recent acquisitions, and further diversify the group’s financing sources,” read a statement from L’Oréal.  

L’Oréal’s recent investments include a 10% stake in dermatology giant Galderma, snapping up Korean skin care brand Dr.G and acquiring luxury cosmetics brand Aēsop.

L’Oréal will remain “an important shareholder” upon completion of the sale, still owning 7.2% of Sanofi’s share capital and 13.1% of its voting rights.

“We are very pleased to announce this transaction,” said L’Oréal CFO Christophe Babule.

“Consistent with the trusted relationship that L’Oréal and Sanofi have built over more than 50 years, we will continue to support the development of Sanofi as a loyal and key shareholder, and are confident in the prospects of the company.”

The transaction, which will be carried out through an off-market block trade, is not subject to any condition precedent and should be finalised in the coming days.

The repurchase is part of Sanofi’s share buy-back programme, which was announced last week.

The transaction is said to align with Sanofi’s capital allocation policy and focuses on sustainable value creation for shareholders.

“L’Oréal has been a trusted shareholder and partner for decades, playing a key role in supporting Sanofi’s growth and transformation,” said Sanofi CFO François Roger. 

“We are pleased to retain L’Oréal as one of our largest shareholders.

“This transaction highlights Sanofi's dedication to sustainable value creation while upholding our strategic priorities and preserving the strength of our key partnerships."

Read more:

You may also like