L’Oréal completes €4 billion acquisition of Kering’s beauty division

L’Oréal has finalised its €4 billion acquisition of Kering’s beauty division, Kering Beauté, following approval from competition authorities.

The transaction includes Kering’s luxury fragrance brand, House of Creed, as well as the signing of exclusive 50-year beauty and fragrance licenses for the Kering brands.

Under the deal, Kering and L’Oréal will also continue to explore development opportunities in wellness and longevity through a new joint venture.

Nicolas Hieronimus, CEO of L’Oréal Group, said: "I am delighted to welcome these extraordinary brands into the L’Oréal family.

"Building on the success of Yves Saint Laurent Beauté over the past twenty years, this significant new step in our strategic partnership with Kering allows us to strengthen our position as the world leader in beauty and luxury beauty, and to write a new chapter together for these iconic brands over the next fifty years, in order to unlock their immense growth potential."

The final deal aligns with the terms originally announced in October 2025.

Luca de Meo, CEO of Kering, said: "Our strategic alliance with L’Oréal marks a decisive step forward for Kering. By leveraging L’Oréal’s unmatched expertise in the beauty sector, we are opening a new phase of acceleration for the development of fragrances and cosmetics for our Houses, among the most iconic in the world.

"This long-term partnership will enable us to fully realise their potential in this category and support their development, drawing on the creativity, desirability, and excellence that set them apart, while giving them access to the world’s most advanced Research & Innovation platforms, unparalleled know-how, outstanding production and distribution capabilities, as well as exceptional media reach."

The announcement comes amid wider discussions in the beauty industry about potential mega-mergers between major players, as The Estée Lauder Companies enters talks with Puig regarding a possible business combination.

While Estée Lauder emphasised that no final decision has been made, stating that "there can be no assurance a deal will proceed or what its terms might be unless a formal agreement is signed", speculation about the potential impact continues to grow.

If completed, the deal would represent a landmark moment for the beauty sector, with a combined valuation reportedly approaching $40 billion.