L’Oréal finalizes USD 4.6B acquisition of Kering Beauté and House of Creed

FRANCE – L’Oréal has solidified its luxury beauty dominance with the completion of its €4 billion (USD 4.6 billion) acquisition of Kering Beauté, following regulatory approvals.

Announced in October 2025, the deal includes L’Oréal’s purchase of the House of Creed and 50-year exclusive licenses for Gucci, Bottega Veneta, and Balenciaga fragrances and beauty products. 

Closing occurred on March 31, 2026, after all approvals, with L’Oréal paying royalties to Kering. 

A 50/50 joint venture explores wellness opportunities to enhance luxury client experiences.

This move bolsters L’Oréal Luxe’s portfolio of iconic brands, accelerating growth in high-end fragrances and cosmetics. 

Kering CEO Luca de Meo stated, “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 realize 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.”

Creed, a leader in haute parfumerie, gains global scale under L’Oréal, building on prior Yves Saint Laurent success. 

The alliance features a strategic committee for brand coordination, signalling long-term collaboration.

L’Oréal’s acquisition of Kering Beauté significantly strengthens its luxury portfolio relative to Estée Lauder by adding premium fragrance powerhouses and long-term licenses, widening an already existing competitive gap.

L’Oréal’s acquisition of Kering Beauté is set to significantly boost its luxury market share by adding high-profile brands and licenses to its already dominant portfolio.

L’Oréal gains full ownership of Creed, a niche leader in haute parfumerie, plus 50-year licenses for the beauty lines of Gucci, Bottega Veneta, and Balenciaga, enhancing its existing Luxe division with Yves Saint Laurent, Armani, Valentino, and Prada. 

Estée Lauder, by contrast, focuses on skincare heavyweights like La Mer, Clinique, and Estée Lauder, as well as recent buys such as DECIEM (The Ordinary). 

This strengthens L’Oréal’s fragrance dominance (already 16% global share, USD 6.9 billion in 2024 sales) while Estée Lauder trails in that category.

This complements existing powerhouses like Yves Saint Laurent, whose revenues L’Oréal grew from €649 million (USD 670 million) to €2 billion (USD 2.3 billion) over two decades. 

Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.