In one of the biggest beauty deals this year, L’Oreal is set to acquire Kering’s entire beauty portfolio for about $4.6 billion.
The agreement means L’Oreal, the French powerhouse behind Maybelline and CeraVe will take over Creed, the luxury fragrance house Kering bought just last year, and also gain 50-year licenses to create perfumes and beauty products for Gucci, Balenciaga, and Bottega Veneta.
The deal, expected to close in 2026, marks a big shift for Kering’s new CEO, Luca de Meo. His focus is to cut down the luxury group’s growing debt and double down on its fashion business. Kering’s beauty division, which posted a loss earlier this year, had struggled to take off — even with Creed in its portfolio.
For L’Oreal, though, this is a power move. Creed is one of the most exciting names in high-end fragrance, and adding Gucci and Balenciaga to its beauty lineup makes the brand even stronger in the luxury market. Analysts call it a “punchy” deal, but one that fits L’Oréal’s strategy perfectly.
Meanwhile, Gucci’s fashion sales have been slowing, especially in China, putting pressure on Kering to refocus and raise cash. Selling the beauty business helps relieve that pressure, even if it means parting with some of its most glamorous names.
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With this acquisition, L’Oréal now controls an impressive line-up of luxury beauty houses — from YSL Beauty to Creed — and will soon hold the rights to Gucci Beauty once its current license with Coty expires.
This is more than just another corporate deal; it’s a reshaping of the global beauty landscape, where the world’s biggest names in fashion and cosmetics continue to merge style, scent, and strategy.
