L'Oreal to buy 8 pct of its shares from Nestle

PARIS Tue Feb 11, 2014 12:46am EST

PARIS Feb 11 (Reuters) - The boards of French cosmetics group L'Oreal and Swiss consumer goods group Nestle have agreed a deal under which L' Oreal will buy 48.5 million of its own shares or 8 percent of its capital from Nestle, the companies said on Tuesday.

The move, which will boost by more than 5 percent L'Oreal's recurring earnings per share on a full year basis, will cut Nestle's stake in L'Oreal to 23.29 percent from 29.4 percent.

The Bettencourt Meyers family's stake in L'Oréal will increase from 30.6 percent to 33.31 percent, the statement said.