L’Oréal will acquire Kering’s beauty brands and licenses for its fashion house names, including Gucci and the prestige fragrance maker Creed, in a $4.6 billion deal. The agreement grants L’Oréal exclusive rights to produce Gucci Beauty once its current contract with Coty ends in 2028, extending for 50 years. It also includes exclusive licenses for the recently launched Bottega Veneta and Balenciaga perfumes. Kering CEO Luca de Meo said the partnership will “accelerate the development of fragrance and cosmetics for our major Houses,” drawing parallels to the success of Yves Saint Laurent Beauté under L’Oréal’s leadership. Along with the cash payment, L’Oréal will pay royalties to Kering on its licensed brands, with the transaction expected to close in the first half of 2026. For Kering, the move signals not retreat but renewal – offloading a struggling beauty arm to redirect capital toward stabilizing its core luxury brands.