Nestle SA: will the food and drug company revisit L’Oréal divestment following retreat from skincare?

Nestle SA: will the food and drug company revisit L’Oréal divestment following retreat from skincare?

Nestle SA’s possible step back from skincare has prompted rumors of a divestment of its $30 billion stake in L’Oréal SA, according to a report by Bloomberg.com.

Following CEO Mark Schneider’s recent acknowledgement that the company’s dermatological business may no longer align with company’s overall strategy of a focus on coffee, water and pet food, the company this week stated it would consider a sale of the unit.

This statement has, according to Bloomberg, raised speculation amongst investors that Schneider is ready to cut ties with L’Oréal, an action sought by activist investor Dan Loeb, with Schneider having also announced a bond sale and the sale of an insurance business.

Schneider has previously held out on a sale of the L’Oréal stake, calling it a ‘fabulous investment.’

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