L’Oréal will raise €3 billion by selling 29.6 million Sanofi shares back to Sanofi to cut its stake in the drugmaker.
The French cosmetics giant, which also owns Garnier and Lancome, sold the shares back to Sanofi for €101.5 apiece as part of an effort to "optimize" its balance sheet after a recent acquisition spree.
L’Oréal, which has held the stake since a deal between the pair in 1999, will now own 7.2% of Sanofi’s shares and said it remains "fully supportive of the company’s value creation strategy".
The transaction is being carried out through an off-market block trade.
L'Oreal finance chief Christophe Babule said: "We are very pleased to announce this transaction. 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."