Sanofi Buys Back ~$3 Billion In Shares From L'Oréal: Details

Pharmaceutical and healthcare company Sanofi SA SNY has announced the purchase of 2.3% of its shares from its long-standing investor, L’Oréal SA LRLCF, as part of its ongoing share repurchase initiative.

Sanofi’s Board of Directors has authorized the purchase of 29.6 million shares from L’Oréal, reflecting a discount of 2.8% to the closing price on January 31, 2025.

The total transaction amounts to 3 billion euros ($3.07 billion) and after the deal is finalized, the acquired shares will be canceled by Sanofi no later than April 29, 2025.

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“We are pleased to retain L’Oréal as one of our largest shareholders. This transaction highlights Sanofi’s dedication to sustainable value creation while upholding our strategic priorities and preserving the strength of our key partnerships,” said CFO François Roger.

The acquisition will take place through an off-market block transaction, with no additional conditions, and is anticipated to be finalized in the coming days.

After the shares are canceled, L’Oréal will retain 7.2% of Sanofi’s total share capital and 13.1% of its voting rights.

The action is anticipated to boost Sanofi’s earnings per share, strengthening the company’s financial standing and providing additional value to its shareholders.

For L’Oréal, the transaction is aimed at improving its financial structure, especially considering its recent acquisitions, while also broadening its financing sources.

Price Action: SNY shares are trading lower by 1.79% at $53.37 in premarket at the last check Monday.

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