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Kering to Sell Beauty Unit to L’Oréal for €4 Billion in Deal With 50-Year Brand Licenses

The move signals a swift pivot under new CEO Luca de Meo to cut debt, refocusing on fashion.

Overview

  • L’Oréal will pay €4 billion in cash and ongoing royalties, with closing expected in the first half of 2026 pending regulatory approvals.
  • The deal transfers Creed to L’Oréal and grants 50-year exclusive licenses for Gucci, Bottega Veneta and Balenciaga, with Gucci beginning after Coty’s agreement ends, reported to be around 2028.
  • Kering and L’Oréal plan a 50/50 joint venture to explore opportunities in luxury wellness and longevity.
  • Kering expects proceeds and royalties to help reduce net debt, reported at €9.5 billion at end-June 2025, as its shares rose about 4–5% on the announcement.
  • For L’Oréal, this would be its largest acquisition to date, strengthening its position in luxury and niche fragrances.