by
AFP
issued
October 20, 2025
Shares in Kering, the French luxury goods group that owns brands such as Gucci, soared on Monday after it announced it would sell its beauty products division to L’Oréal for $4.6 billion.
Sale of Kering to strengthen L’Oréal’s high-end beauty products – Reuters
Shares soared more than 5% at the start of Paris trading after Sunday’s announcement of an agreement to grant L’Oréal a 50-year license to develop and sell products under Kering’s Gucci, Bottega Veneta and Balenciaga brands.
L’Oreal shares edged up 0.6%, matching the Paris CAC40 index’s 0.5% rise.
Kering has struggled financially in recent years, announcing in July that first-half profits were cut by nearly half as sales fell 16%.
The proceeds from the sale of the beauty division, which includes major perfume brand Creed, will be used to reduce the company’s 9.5 billion euros ($11 billion) in debt.
Kering is scheduled to report third-quarter results on Wednesday.
The announced sale to L’Oréal is subject to regulatory approval and would be paid in the first half of 2026.
When Kering’s current license with US company Coty expires in 2028, L’Oréal will take over a 50-year exclusive license.
Kering’s new CEO Luca de Meo, who took over just a month ago, said the acquisition was a “decisive step” for the French group.
He is trying to turn around Kering’s fortunes, which have been depressed by difficulties at Gucci, which accounts for 44% of the group’s sales and two-thirds of its operating profits.
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