THE FACT THAT? L’Oréal has indicated that it would welcome taking control of Gucci’s beauty license before its current expiration in 2028, as talks continue between Gucci owner Kering and current licensee Coty.
THE DETAILS At an analyst conference, L’Oréal CEO Nicolas Hieronimus said the group “would be happy to acquire the brand sooner,” confirming that the matter is being discussed between Kering and Coty. Gucci’s beauty license is currently held by Coty until 2028, but has been described as a key strategic element in L’Oréal’s broader deal with Kering, including the €4 billion acquisition of Kering’s beauty division built around Creed in October.
Industry sources have previously suggested that Kering attempted to buy Coty’s licensing position before its transaction with L’Oréal, but Coty refused. Gucci’s beauty business, although linked to one of the world’s most recognized luxury brands, is widely considered by analysts to be underdeveloped. Coty’s new CEO, Markus Strobel, has stated that the company remains open to value-creating deals, although both Coty and Kering have declined to comment on current negotiations.
THE WHY? Securing early access to Gucci’s beauty license would significantly strengthen L’Oréal Luxe’s portfolio, giving it control of a high-profile but under-leveraged brand and aligning with its strategy of expanding further into premium and high-fashion beauty.
Fountain: Reuters
