L’Oréal and Kering Enter Into Joint Beauty Venture

Core Insights - Kering and L'Oréal have officially announced a long-term strategic partnership focused on beauty and wellness [1] Group 1: Partnership Details - The agreement includes L'Oréal's acquisition of the House of Creed and grants L'Oréal a 50-year exclusive license for creating, developing, and distributing fragrance and beauty products for Gucci, starting after Kering's current license with Coty expires [2] - The partnership also encompasses 50-year exclusive licenses for Bottega Veneta and Balenciaga, effective upon the transaction's closure [3] - The total value of the agreement is set at 4 billion euros, to be paid in cash at closing, which is anticipated in the first half of 2026. Additionally, L'Oréal will pay royalties to Kering for the use of its licensed brands [3] Group 2: Future Opportunities - Beyond beauty, Kering and L'Oréal plan to explore business opportunities at the intersection of luxury, wellness, and longevity through a 50/50 joint venture [4]