A makeover for L’Oréal

After the death of Liliane Bettencourt, Nestlé could sell its stake in L’Oréal – or buy the whole firm. Alice Gråhns reports.

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Franoise Bettencourt with her late mother: doing nothing is an option
(Image credit: Copyright (c) 2011 Shutterstock. No use without permission.)

The death last week of Liliane Bettencourt (see page 41) could reshape the ties between two of Europe's largest firms. Her passing starts a six-month countdown to the expiry of an agreement between the Bettencourt family, the largest shareholder in L'Oral, and Swiss multinational Nestl, the cosmetics giant's other key shareholder. Nestl has owned a stake in L'Oral since 1974, when Bettencourt sought a co-investor to protect the company from state takeovers. A later agreement, drawn up in 2004, bars either side from lifting its stake and obliges them to act as one party.That pact may now unravel.

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Alice grew up in Stockholm and studied at the University of the Arts London, where she gained a first-class BA in Journalism. She has written for several publications in Stockholm and London, and joined MoneyWeek in 2017.