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By
Reuters
Published
Jun 17, 2011
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L'Oreal does not see more synergies with Nestle

By
Reuters
Published
Jun 17, 2011

June 17 - L'Oreal's chief was quoted as saying on Wednesday he does not see more potential for synergies between itself and large shareholder Nestle.

L'Oréal, Nestle
Trésor in Love by Lancôme, owned by L'Oréal

"I don't see any more possible synergies for either company," L'Oreal CEO Jean-Paul Agon told Swiss newspaper "Finanz und Wirtschaft" when asked if closer collaboration with Nestle would make sense.

Nestle owns 30 percent of L'Oreal and has said it would decide on the future of its stake in L'Oreal in 2014 when a 10-year standstill agreement draws to an end.

Nestle struck an agreement in 2004 with the Bettencourt family, which holds about 31 percent in L'Oreal, on a mutual right of first refusal for their L'Oreal shares for 10 years.

Agon also hit an upbeat tone about the group's outlook in the interview. "We expect the market to grow again at around 4 percent. Our aim is to grow stronger than the market in all areas -- like last year," Agon said, adding he sees considerable potential in markets like China, India and Brazil.

(Reporting by Katie Reid; Editing by Louise Heavens)

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