L’Oréal has finalised its €4bn ($4.64bn) acquisition of Kering Beauté after securing approval from competition authorities.

Initially announced in October 2025, the deal includes the transfer of the House of Creed and formalises a broader strategic partnership between L’Oréal and Kering.

It also establishes long-term licensing agreements covering beauty and fragrance lines for several of Kering’s luxury brands.

The payment has been made in cash, with additional royalty payments to be made over time under the licensing arrangements.

Under the agreement, and as already disclosed, the option relating to the Gucci brand to proceed with a 50-year exclusive licence arrangement will take effect once the current Coty licence ends, in line with the Kering Group’s commitments under the existing licensing contract.

Comparable exclusive agreements have been secured for Bottega Veneta and Balenciaga.

Kering will continue to receive royalties tied to the use of its brands under these arrangements.

Both companies also stated they will pursue further opportunities in luxury, wellness and longevity through a joint venture first outlined at the time of the deal’s announcement.

The completion of the transaction comes against a backdrop of weaker financial performance at Kering in 2025.

The group reported a 13% decline in revenue to €14.67bn on a reported basis, or 10% on a comparable basis.

Fourth-quarter revenue fell 9% on a reported basis and 3% on a like-for-like basis, which the company said reflected gradual sequential improvement.

In a separate development, Kering agreed last year to acquire a stake in Raselli Franco Group, an Italian luxury jewellery manufacturer.

The group will initially take a 20% holding, with the structure allowing for a potential full acquisition by 2032.