L’Oréal and Sanofi: a 3 billion euro financial agreement

L’Oréal announces a major deal with Sanofi, recouping 3 billion euros by selling part of its stake in the pharmaceutical company.

Cosmetics group L’Oréal and pharmaceutical giant Sanofi recently concluded a major financial agreement. Sanofi bought back 2.3% of its own shares held by L’Oréal, for a total of 3 billion euros. This transaction is part of the 5 billion euro share buyback program announced by Sanofi in January.

L’Oréal remains a key Sanofi shareholder

Despite this sale, L’Oréal retains 7.2% of Sanofi’s capital and 13.1% of voting rights, demonstrating its determination to maintain a strong link with the laboratory. Christophe Babule, Managing Director Administration and Finance of L’Oréal, stated that this transaction was part of “a relationship of trust established over 50 years ago”, reiterating the Group’s support for Sanofi’s development.

This sale enables L’Oréal to optimize its balance sheet and increase its investment capacity, particularly after the recent acquisition of the Korean brand Dr.G.

Confirmed financial strength

The Group posted sustained growth, with sales up +6% in the first nine months of 2024, reaching 32.40 billion euros despite the slowdown in the Chinese market.

Sanofi, meanwhile, had a record year, with sales of 41 billion euros, boosted by the success of its infant bronchiolitis vaccine, Beyfortus.

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