Nestlé to shed 22m L’Oréal shares as part of new £16bn buyback program
Nestlé is set to shed around 22m L’Oréal shares, as part of a share buyback program worth more than £16bn (CHF 20bn).
The consumer goods giant will have reduced its stake in the beauty group to 20.1 per cent once the transaction has been finalised.
The shares sale is expected to pull in some £7.5bn (CHF 9.3bn), as Nestlé looks to buy a little over £8bn (CHF 10bn) worth of shares every year between 2022 and 2024.
Nestlé, which has upgraded from its previous share buyback program, has already snapped up over £10bn worth of L’Oréal shares this week – a solid portion of its new commitment.
The current share buyback program will expire at the end of December and will be replaced by the new £16bn program on January 3.
“Should any sizable acquisitions take place, the new share buyback program commencing January 3, 2022 will be adjusted accordingly,” Nestlé said in a statement today, adding that “the volume of monthly share buybacks will depend on market conditions”.