Now it’s official: The French luxury group Kering and the cosmetics giant L’Oréal completed their partnership in the beauty sector on March 31st. The transaction, worth four billion euros, redefines the global market for luxury cosmetics. It marks a structural turning point for the two leading French companies.
The alliance was announced in October 2025 and has now received approval from competition authorities. L’Oréal officially takes control of Kering Beauté. This unit includes the renowned House of Creed as well as the fragrance and cosmetics licenses of the group’s iconic brands such as Bottega Veneta, Balenciaga and Alexander McQueen.
A “Cash & Royalties” deal
The financial terms of the agreement show a transaction optimized for immediate growth:
Cash payment: L’Oréal paid four billion euros in cash to Kering.
Recurring Revenue: In addition to the sales price, Kering will receive royalties for the use of its licensed brands.
Operational synergies: Kering will benefit from L’Oréal’s strengths in research and development, production and media presence.
For Kering: Delegate to grow faster
Under the leadership of Luca de Meo, Kering makes a pragmatic decision. After attempting to internalize its beauty division, the group is now relying on the industrial expertise of the global market leader. The aim is to initiate a “new phase of acceleration” for its luxury brands. They should be offered access to the most advanced innovation platforms in the world. For Kering, which had sales of 14.7 billion euros in 2025, this influx of money will allow it to strengthen its positions in its core businesses of leather goods and jewelry.
For L’Oréal: Consolidate its supremacy in the luxury segment
For Nicolas Hieronimus, this acquisition is a natural extension of the historic collaboration around Yves Saint Laurent Beauté. By integrating Creed and the other Kering licenses, L’Oréal is strengthening its dominance in the ‘Beauté de Luxe’ segment. The group is committed to unlocking the potential of these brands for the “next fifty years”.
Beyond perfume: heading towards “longevity”
The most forward-looking point in the announcement is the establishment of a joint venture dedicated to the topics of well-being and longevity. The alliance is not limited to fragrances, but also extends to the new areas of health and life sciences. This pivot suggests that both companies are anticipating the growing fusion of traditional luxury and medical “deep tech” in the beauty space.
analysis
The closing takes place in a French economic environment characterized by a stabilization of inflation. According to the Banque de France, this was 1.1 percent in February 2026. While the luxury sector is resilient, it faces rising energy costs and more complex value chains. With their alliance, Kering and L’Oréal are creating an extremely powerful ecosystem for defense and offense. Kering protects its margin and desirability while L’Oréal takes control of the market’s most sought-after assets.
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