The present situation of L'Oreal and Nestle relationship "isn't on the agenda for the time being," commented Jean-Paul Agon, CEO of L'Oreal in an interview with Investir, a French weekly magazine, which was published today. He added, "Relations with Nestle are excellent."
Nestle, the Swiss food giant, bought its shares from L'Oreal in the seventies. In 2004, Nestle solidified its stand through a new agreement with the Bettencourts. Nestle owns thirty percent of L'Oreal shares while the remaining thirty one percent remained under the control of the Bettencourts, the family who controls the French cosmetic company.
In April of 2009, it was the first time that both Nestle and L'Oreal were allowed to sell their stakes since 2004. Nestle shareholders were indecisive if they will purchase L'Oreal shares. In January 2009, Ms Bettencourt at the age of 86 passed away and this prevented both Nestle and L'Oreal from purchasing more shares from one another. Both giants were to wait for six months from the time of Ms Bettencourt's death until they can purchase additional stakes.
And that was their history.
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