Overview

• Reports say an agreement could be unveiled next week, though the parties are still negotiating and a deal could fall through.
• L’Oréal would take over the Creed fragrance house and, according to the Wall Street Journal, gain development rights for beauty tied to Bottega Veneta, Balenciaga, and Alexander McQueen.
• The scope faces licensing hurdles, with Yves Saint Laurent already under a long-standing L’Oréal license and Gucci’s beauty licensed to Coty for now.
• Kering set up its beauty unit in 2023 after paying roughly €3.5 billion for Creed to anchor the platform.
• Proceeds are viewed by analysts as a way to trim Kering’s roughly €9.5 billion net debt under new CEO Luca de Meo; Kering declined to comment and L’Oréal has not responded.