L’Oréal acquires Kering’s beauty division for €4 billion

French cosmetics powerhouse L’Oréal has reached a landmark agreement to acquire Kering’s beauty division, which includes iconic fashion houses Gucci, Balenciaga, Bottega Veneta, and Alexander McQueen, for approximately €4 billion (US $4.7 billion).

The deal grants L’Oréal exclusive rights to develop, produce, and market fragrances, makeup, and skincare lines under these luxury licenses for the next 50 years. It also includes full ownership of Creed, the niche fragrance brand Kering acquired in 2023.

The transaction forms part of François-Henri Pinault’s broader strategy to refocus Kering on its core fashion and accessories business while reducing debt and improving competitiveness against LVMH and Richemont.

For L’Oréal Luxe, this acquisition represents a strategic leap toward dominance in the ultra-premium beauty segment, where fashion and cosmetics synergies are expected to drive annual growth above 8 %.

The closing is expected during the first half of 2026, pending regulatory approval. Industry analysts see the move as a turning point in global luxury dynamics—strengthening L’Oréal’s hold over the beauty landscape while allowing Kering to streamline its portfolio.

“This agreement reshapes the global luxury map. L’Oréal strengthens its leadership in beauty, while Kering refocuses on fashion—marking a new chapter for both giants.”
— LUXONOMY Analysis 2025.