Dive Brief:
- Nestle is looking at ways to reduce its $32 billion, 30.9% stake in cosmetics maker L'Oreal, according to reports. Nestle is the largest shareholder in L'Oreal.
- People with knowledge of the matter told Bloomberg that Nestle is looking to sell "because cosmetics don’t fit its long-term nutrition and health strategy, the investment ties up capital and has already generated sizable returns."
Dive Insight:
Nestle's potential move represents a shift in refocusing on its food brands. According to a report in Italian newspaper La Repubblica, Nestle is also looking to buy Ferrero SpA, the maker of Nutella, and has already entered preliminary talks. The deal would make Nestle the largest confectionery company in the world.