The deal will diversify the French beauty giant’s funding sources at a time when the industry is undergoing a slowdown.

L'Oreal said it would sell a 2.3% stake, or about 29.6 million shares for 101.5 euros each, back to the pharma company. After the sale, L'Oreal will hold 7.2% of Sanofi's share capital and 13.1% of ...