PARIS, Dec 8 (Reuters) - L'Oreal shares opened up 1.4% Wednesday after Nestle said Tuesday it would cut its stake in the French cosmetics giant to about 20% by selling shares worth 8.9 billion euros ($10.05 billion).

Following the deal, Nestle said it would own 20.1% of L'Oreal, down from 23.3% previously. L'Oreal, meanwhile, would buy back shares representing 4% of its capital and cancel them at the latest on Aug. 29.

L'Oreal, which is paying 400 euros per share, said the deal will have an accretive effect on the company's earnings per share of more than 4% in a full year. The beauty company is paying with cash and debt.

As a result of the transaction, which is expected to close in the coming days, the Bettencourt Meyers family, will see their stake rise to 34.7% from 33.3%, but will not be required to launch a takeover offer, as normally required for passing ownership thresholds above one-third of the capital. ($1 = 0.8859 euros) (Reporting by Benoit Van Overstraeten; Editing by Dominique Vidalon)