L'Oréal to acquire Kering Beauté for 4 billion euros

L'Oréal has reached an agreement to acquire Kering Beauté for approximately 4 billion euros (nearly 4.6 billion dollars), a deal expected to close in the first half of 2026. The acquisition includes Creed, which accounts for 93% of the division's sales, and grants L'Oréal 50-year exclusive licenses for the fragrances and cosmetics of Bottega Veneta and Balenciaga immediately, with Gucci licenses following in 2028.

This transaction marks a strategic shift for Kering, which is refocusing its operations following a 12% revenue decline in 2024. Under CEO Luca de Meo, the group aims to prioritize financial discipline and debt reduction. Meanwhile, L'Oréal continues to expand its portfolio through its ‘Beauty Stimulus Plan,’ a strategy led by CEO Nicolas Hieronimus that emphasizes the integration of artificial intelligence in research and development to accelerate product innovation cycles.