Nestle Sells $10 Billion L’Oreal Stake in Rare Move After Surge

Nestle SA is selling part of its stake in L’Oreal SA back to the cosmetics maker for 8.9 billion euros ($10 billion), scaling back a more than four-decade link between two of Europe’s biggest consumer-goods companies.

Nestle will own 20.1% of the French maker of shampoos and lipsticks after the sale of 22.3 million shares for 400 euros each, down from 23.3% at the end of last year. It’s the first time Nestle has reduced its holding since 2014, when it disposed of an 8% stake for 6 billion euros.

Shares in Nestle rose as much as 2% in Swiss ...