The share price of Kering, the French luxury group that owns Gucci and other brands, jumped sharply Monday after it announced the $4.6-billion sale of its beauty products division to L'Oreal.

Its shares soared more than five percent at the opening of Paris trading, following its announcement Sunday of the deal that would also give L'Oreal 50-year licences to develop and distribute products under Kering's Gucci, Bottega Veneta and Balenciaga labels.

L'Oreal's shares rose a modest 0.6 percent, in line with the 0.5 percent increase for the Paris CAC 40 index.

Kering has been struggling financially for several years, and in July said its first-half profits had slipped by nearly half on a 16-percent drop in turnover.

Proceeds of the sale of its beauty division, which includes its leading pe

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