L’Oréal Signals Interest in Early Access to Gucci Beauty Licence

THE WHAT? L’Oréal has indicated it would welcome gaining control of the Gucci beauty licence before its current expiry in 2028, as discussions continue between Gucci owner Kering and current licence holder Coty.

THE DETAILS Speaking at an analyst conference, L’Oréal CEO Nicolas Hieronimus said the group “would be happy to get the brand sooner,” confirming that the matter is being discussed between Kering and Coty. Gucci’s beauty licence is currently held by Coty until 2028, but it has been described as a key strategic element in L’Oréal’s broader dealmaking 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 out Coty’s licence position ahead of its transaction with L’Oréal, but Coty declined. Gucci’s beauty business, while attached to one of the world’s most recognised luxury brands, is widely viewed by analysts as underdeveloped. Coty’s new CEO Markus Strobel has stated the company remains open to value-creating deals, though both Coty and Kering have declined to comment on current negotiations.

THE WHY? Securing early access to the Gucci beauty licence would significantly strengthen L’Oréal Luxe’s portfolio, giving it control of a high-profile but underleveraged brand and aligning with its strategy to expand further into premium and couture beauty.

Source: Reuters