/images/ppid_59c68470-image-176095254075397308.webp)
/images/ppid_59c68470-image-176069755357526503.webp)
What is the story about?
French luxury group Kering and cosmetics giant L'Oréal have entered a sweeping €4 billion strategic alliance aimed at reshaping the high end of the global beauty and wellness market.
Under the deal, L'Oréal will acquire Kering Beauté, including the House of Creed, and secure 50-year exclusive licenses to develop and distribute fragrances and beauty lines for Gucci, Bottega Veneta, and Balenciaga. The transaction, expected to close in the first half of 2026, will be settled in cash and accompanied by ongoing royalty payments to Kering.
The move marks a major consolidation in luxury beauty. For Kering, it's a pivot away from direct ownership of its beauty arm toward a licensing model that leverages L'Oréal's global scale. For L'Oréal, it significantly deepens its foothold in prestige fragrances—especially with Creed, the 263-year-old perfume house revered for artisanal craftsmanship and loyal clientele.
Beyond the brand deals, the two French giants will also form a 50/50 joint venture exploring the fast-emerging wellness and longevity segment—blending Kering's luxury experience with L'Oréal's R&D and beauty tech expertise.
Under the deal, L'Oréal will acquire Kering Beauté, including the House of Creed, and secure 50-year exclusive licenses to develop and distribute fragrances and beauty lines for Gucci, Bottega Veneta, and Balenciaga. The transaction, expected to close in the first half of 2026, will be settled in cash and accompanied by ongoing royalty payments to Kering.
The move marks a major consolidation in luxury beauty. For Kering, it's a pivot away from direct ownership of its beauty arm toward a licensing model that leverages L'Oréal's global scale. For L'Oréal, it significantly deepens its foothold in prestige fragrances—especially with Creed, the 263-year-old perfume house revered for artisanal craftsmanship and loyal clientele.
Beyond the brand deals, the two French giants will also form a 50/50 joint venture exploring the fast-emerging wellness and longevity segment—blending Kering's luxury experience with L'Oréal's R&D and beauty tech expertise.
Do you find this article useful?
/images/ppid_59c68470-image-176092753086241771.webp)
/images/ppid_a911dc6a-image-176088642615775382.webp)
/images/ppid_59c68470-image-176093507448158650.webp)
/images/ppid_a911dc6a-image-176086965127530820.webp)
/images/ppid_59c68470-image-176072002820820569.webp)
