What's Happening?
L’Oréal has entered into a significant strategic partnership with luxury group Kering, valued at approximately $4.66 billion. This deal grants L’Oréal the rights to sell Kering Beauté, including the luxury fragrance brand Creed, and involves a 50-year
beauty and fragrance licensing agreement for Kering brands such as Gucci, Balenciaga, and Bottega Veneta. Additionally, the partnership includes a 50/50 joint venture to explore opportunities in wellness and longevity. The transaction is expected to close in the first half of 2026, pending regulatory approvals. This move expands on L’Oréal’s previous acquisition of Yves Saint Laurent Beauté from Kering in 2008.
Why It's Important?
This partnership marks a significant expansion for L’Oréal in the luxury beauty market, allowing it to leverage the prestige of Kering’s brands to enhance its product offerings. For Kering, the deal represents a strategic move to accelerate the development of its fragrance and cosmetics lines, potentially unlocking substantial long-term growth. The collaboration could reshape the luxury beauty landscape by combining L’Oréal’s expertise in beauty with Kering’s high-end brand portfolio, potentially increasing market share and consumer reach for both companies.
What's Next?
The completion of the deal is contingent upon regulatory approvals, which are expected by mid-2026. Once finalized, L’Oréal will begin developing and distributing new fragrance and beauty products under the Kering brand licenses. A strategic committee will be established to ensure coordination between the two companies, focusing on maximizing the potential of the partnership. Industry observers will be watching closely to see how this collaboration influences market dynamics and whether it prompts similar alliances among other luxury and beauty brands.