EU Passes Nestle, L’Oreal “Healthy” Cosmetics Joint Venture

The European Commission, Brussels, Belgium, cleared Swiss Food group Nestle SA’s joint venture with French cosmetics giant L’Oreal to develop a new range of “healthy” cosmetics. The new company, Laboratoires Inneov, will offer cosmetics with vitamins and other nutritional supplements.

Inneov will depend on Nestle’s nutrition research as one of the world’s largest food suppliers. L’Oreal will provide the cosmetics background and specifically its expertise in dermatological studies.

The deal posed no antitrust concerns since both Nestle and L’Oreal are new entrants in this market. The Commission also noted the presence of strong competitors, some of them belonging to pharmaceutical or cosmetic groups.

Both companies will own 50% of the joint venture. Other financial details were not disclosed.