Gucci owner Kering to sell beauty division to L’Oréal for €4bn

New chief executive Luca de Meo aims to bring down debt burden and refocus on core fashion business

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Gucci owner Kering is selling its beauty division to L’Oréal for €4bn (£3.5bn), as its new chief executive Luca de Meo seeks to turn around the French luxury company.

The deal will give French beauty group L’Oréal Kering’s fragrance line Creed, which was founded in 1760. The deal also includes future rights to develop fragrance and beauty products under Kering’s fashion labels Gucci, Bottega Veneta and Balenciaga under a 50-year exclusive licence.