Heir of L'Oréal Cosmetics Company Passes Away at Age 94

Liliane Bettencourt, the French billionaire whose family founded the cosmetics company L'Oréal and who was still its main shareholder, passed away at the age of 94. Forbes magazine estimated her wealth at around $40 billion and declared her the richest woman in the world. According to Reuters, Ms. Bettencourt's death will mark a new chapter in the history of L'Oréal, which is currently the fourth largest registered company in France, and is likely to change the company's relations with Nestlé, one of its main shareholders. Ms. Bettencourt and her family own 33% of L'Oréal's shares. Her daughter, Françoise Bettencourt Meyers, who along with her son is a member of the company's board, stated that the Bettencourt family remains committed to L'Oréal and its management. She said in a statement: "My mother passed away peacefully on Wednesday. On behalf of the entire family, I express our commitment and loyalty to L'Oréal, as well as complete trust in the company's leadership and all its employees worldwide." L'Oréal owns several cosmetic brands including Lancôme, Kiehl's, and Garnier shampoo. The food company Nestlé, which owns about 23% of L'Oréal's shares, has agreed with the founding family that neither party can increase their shares during Liliane Bettencourt's lifetime and for at least six months after her death. In 1974, fearing the rise of the Socialist Party in France and the potential nationalization of L'Oréal, Liliane Bettencourt transferred part of her shares to Nestlé in exchange for receiving 3% of Nestlé's shares. A Nestlé spokesperson declined to comment on the fate of the company's shares in L'Oréal on Thursday, only stating: "We sincerely extend our condolences to Ms. Bettencourt's family." Liliane Bettencourt's wealth, complex family relations, and controversial life made her a constant subject of news, although she never gave interviews. With a fortune of about $40 billion, she was the richest woman and among the top 20 wealthiest people in the world. Reuters adds that the French Minister of Economy praised the stability that Ms. Bettencourt established in L'Oréal's subsidiaries and expressed hope that the company would maintain its close ties to the domestic market. This statement reflects the importance and influence of L'Oréal in France. Ms. Bettencourt was involved in various legal and financial disputes that continued until the end of her life. In one of these financial cases in 2011, judicial authorities entrusted her guardianship to family members as they concluded that she lacked the necessary conditions to protect her assets, suffering from memory impairment and being financially exploited. Another controversial aspect of her life was her marriage to André Bettencourt, a French politician, especially when it was revealed that Mr. Bettencourt had written anti-Semitic content at the beginning of World War II. Another contentious issue was allegations regarding payments made by Ms. Bettencourt to members of the French government and associates of then-President Nicolas Sarkozy in 2010. In the end, Mr. Sarkozy was acquitted in this case. Liliane joined L'Oréal as an intern at the age of 15, when her father, Eugène Schueller, founded the company as a small business for mixing cosmetics and packaging shampoo bottles. After her father's death in 1957, she became the heir to the company, although she delegated its management to others. Ms. Bettencourt became a widow in 2007 and had not participated in L'Oréal's board meetings since 2012.