SHERIDAN, WYOMING – May 9, 2025 – The Bettencourt family and Nestlé S.A. have announced that their partnership agreement with L’Oréal, which was initially signed in 2004, remains intact and continues to guide their stakes in the global beauty giant. The deal ensures that the two entities will work together with L’Oréal for the foreseeable future, maintaining strategic unity in one of the most recognized beauty companies in the world.
The Ongoing Partnership
The partnership between the Bettencourt family and Nestlé goes back to February 3, 2004, when both parties established an agreement outlining their relationship with L’Oréal. Under the terms of the agreement, their respective stakes in L’Oréal are non-transferable until April 29, 2009, and this clause continues to be upheld. However, the essential provisions of the agreement, which involve key governance and strategic decisions, will remain effective beyond this date.
This strategic collaboration ensures that both the Bettencourt family and Nestlé continue to act together toward the collective success of L’Oréal, without the involvement of external third parties. The decision-making power remains firmly within their hands, allowing for a unified approach to managing L’Oréal’s future.
The Role of the Agreement
Several critical aspects of the agreement ensure that the governance structure within L’Oréal stays in line with both the Bettencourt family’s and Nestlé’s vision for the company. These provisions include:
- Limitation Cap: Restrictions on the amount of capital the Bettencourt family and Nestlé can hold in L’Oréal.
- Pre-emption Rights: Both parties maintain the right of first refusal when it comes to the sale of shares in L’Oréal.
- Escrow Provisions: Certain stakes in L’Oréal will be held in escrow until specific conditions are met.
- Board Formation: A process is in place for the formation of L’Oréal’s board of directors and strategic committees.
These provisions create a strong framework that fosters stability within L’Oréal, ensuring a steady and strategic course for the company’s continued growth.
Looking Ahead Beyond April 2009
As the expiration date of April 29, 2009, approaches, the Bettencourt family and Nestlé have reiterated their commitment to continue acting in concert. This signals a long-term alignment of interests that ensures L’Oréal’s strategic direction will remain focused on global growth, innovation, and leadership in the beauty industry. Both parties are optimistic about the future, with the partnership aimed at nurturing L’Oréal’s enduring success.
The ongoing collaboration between Nestlé and the Bettencourt family highlights the strength of their relationship and their commitment to L’Oréal’s continued leadership in the global beauty market. Consumers can look forward to the innovative products and initiatives that emerge from this longstanding partnership.
Conclusion
With the Bettencourt family and Nestlé reaffirming their partnership, the future of L’Oréal remains bright. As the company continues to evolve and expand its influence across the globe, this collaboration ensures that it will do so with a strong, unified vision at the helm.