French luxury group Kering, owner of the Gucci fashion brand, is close to selling its beauty division to L'Oreal, according to two sources familiar with the matter.
One of the sources confirmed that the deal could be worth around $4 billion, in line with earlier information published by the Wall Street Journal (WSJ), which was the first to report the development.
L'Oreal, the world's largest cosmetics group, is expected to buy the luxury perfume brand Creed and gain the right to develop beauty products associated with many fashion brands owned by Kering such as Bottega Veneta, Balenciaga and Alexander McQueen. The deal could be announced next week, according to WSJ.
Kering, controlled by the Pinault family, launched its beauty division in 2023. That same year, the group acquired Creed for 3.5 billion euros (about $4 billion).
The sale of the beauty division is seen as a strategic move by new CEO Luca De Meo, who will officially take office in September 2025, to address the high debt problem that has worried investors. As of the end of June 2025, Kering's net debt reached 9.5 billion euros.
The group is struggling to revive sales of its flagship brand Gucci amid a weakening luxury market due to falling consumer demand, especially in China, which has been the industry's main growth driver for more than a decade.
Since Kering announced the appointment of Luca De Meo in mid-June 2025, the group's shares have risen by about 60%.
In another development, according to Reuters news agency, this month L'Oreal was approached by representatives of the Armani group, after the group's name was mentioned in the will of the late designer Giorgio Armani as a potential buyer of a minority stake in the fashion house he founded./.
Source: https://www.vietnamplus.vn/tap-doan-xa-xi-pham-kering-sap-ban-mang-lam-dep-cho-loreal-voi-gia-4-ty-usd-post1071257.vnp
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