Nestlé has been ordered by the Brazilian anti-trust authority to sell the chocolate manufacturer Garoto it bought two years ago.

Nestlé has been given 20 days by the Administrative Council of Economic Defence (CADE) to name a firm to find potential buyers for Garoto and oversee the transfer of assets.

Meanwhile, Gesparal, the majority shareholder in French cosmetics group L’Oréal said that its two shareholders, Nestlé and the Bettencourt family, have agreed on a merger between L’Oréal and Gesparal

Absorbing Gesparal will not influence L’Oréal’s financial structure or its results. Nestlé’s 49% stake in Gesparal becomes a 26.4% direct holding in L’Oréal as a result of the merger.