L'Oréal Plans €4 Billion Acquisition of Kering Beauty Business

Kering, under CEO Luca de Meo, is selling its beauty business to L'Oréal for €4 billion as part of a strategic shift to reduce debt and focus on its core luxury fashion brands like Gucci, Bottega Veneta, and Balenciaga. This agreement grants L'Oréal a 50-year exclusive license to develop and distribute fragrance and beauty products for these prestigious labels, marking L'Oréal's largest acquisition to date and reinforcing its position in the luxury fragrance market. The deal includes L'Oréal's acquisition of the House of Creed and is expected to close in the first half of 2026, with additional royalties paid to Kering. The partnership also aims to explore new business opportunities in luxury wellness and longevity, combining Kering's iconic brands with L'Oréal's expertise in beauty. Industry experts view this move as a game-changer in the beauty industry, enabling Kering to strengthen its financial stability while allowing L'Oréal to expand its luxury beauty portfolio. The transaction reflects a significant realignment in the luxury and beauty sectors, signaling potential shifts in market dynamics and future collaborations.