In a decisive move, Kering has announced the sale of its beauty business to L'Oreal for 4 billion euros. This shift aligns with new CEO Luca de Meo's strategy to redirect focus to the company's core fashion divisions, while simultaneously addressing its substantial debt.

The agreement empowers L'Oreal with a 50-year exclusive license to Kering's fragrance and beauty lines for its fashion labels such as Gucci, Bottega Veneta, and Balenciaga. This change reflects de Meo's restructuring, overturning his predecessor Pinault's prior strategic directions.

Analysts see the divestment as a necessary step for Kering, allowing it to concentrate on its strengths in the luxury sector, while addressing financial pressures. The move is also seen as a signal of Kering's commitment to financially fortif

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