L’Oréal will acquire Kering’s beauty unit, including the Creed fragrance line, for €4 billion, marking its largest deal in 116 years.

The move expands L’Oréal’s luxury fragrance portfolio and gives it a 50-year license to develop products under Bottega Veneta, Balenciaga, and eventually Gucci.

Kering, which bought Creed for €3.5 billion in 2023, aims to reduce debt and focus on fashion, Axios has reported.

The companies will also form a 50/50 joint venture to explore opportunities beyond fragrances, highlighting the enduring market for true luxury beauty.