L’Oréal has agreed to acquire Kering Beauté, including the House of Creed, for €4 billion, with the groups setting out a slate of 50‑year exclusive beauty and fragrance licences across Gucci, Bottega Veneta and Balenciaga, according to statements from the companies and media reports.

Under the agreement, L’Oréal will take over Creed and secure long-term rights to create, develop and distribute beauty products for Kering’s brands. The Gucci licence will commence after the expiration of the current Coty agreement, which analysts believe is in 2028, while licences for Bottega Veneta and Balenciaga will start upon closing, expected in the first half of 2026. L’Oréal will also pay royalties to Kering on its licensed brands.

Kering said the deal is part of a broader strategic shift. “This strategic alliance marks a decisive step for Kering,” said Luca de Meo, chief executive officer of Kering.

He added: “Joining forces with the global leader in beauty, we will accelerate the development of fragrance and cosmetics for our major Houses, allowing them to achieve scale in this category and unlock their immense long-term potential, as did Yves Saint Laurent Beauté under L’Oréal’s stewardship. Together, we will also venture into new frontiers of wellness, combining the unrivalled expertise of L’Oréal with our unique luxury reach. This partnership allows us to focus on what defines us best: the creative power and desirability of our Houses.”

Nicolas Hieronimus, chief executive officer of L’Oréal Groupe, said the acquisition strengthens L’Oréal’s luxury footprint. “I am delighted to forge this long-term strategic alliance with one of the world’s most prestigious, creative and visionary luxury groups. This partnership will further solidify our position as the world’s #1 luxury beauty company and allow us to explore new avenues in wellness together,” he said. “Through Creed, we will establish ourselves as one of the leading players in the fast-growing niche fragrance market. Gucci, Bottega Veneta and Balenciaga are all exceptional couture brands with enormous potential for growth.”

The companies also plan a 50/50 joint venture to explore opportunities at the intersection of luxury, wellness and longevity, combining L’Oréal’s innovation capabilities with Kering’s understanding of luxury clients.

Analysts described the move as a major transaction for both parties, noting it reduces complexity for Kering while extending L’Oréal’s licensing portfolio in high-end beauty categories. Closing is subject to customary approvals.

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