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L’Oréal to Buy Kering Beauté for €4 Billion, Securing 50-Year Gucci, Bottega Veneta and Balenciaga Licences

Fifty-year licences plus a wellness joint venture signal a long horizon for brand alignment.

Overview

  • The all-cash transaction includes the House of Creed and is slated to close in the first half of 2026 pending regulatory approvals.
  • L’Oréal will gain exclusive 50-year rights for Gucci beauty once Coty’s current agreement ends, with similar licences for Bottega Veneta and Balenciaga at closing.
  • Kering and L’Oréal will set up a 50/50 venture focused on luxury wellness and longevity, with a strategic committee coordinating brand stewardship.
  • Analysts expect Kering to use proceeds to reduce debt and concentrate on its core fashion houses under new chief executive Luca de Meo.
  • L’Oréal reported third-quarter like-for-like sales growth of 4.2 percent across divisions and regions, underscoring momentum in luxury and fragrances.