L'Oreal paying €4 billion to buy Creed and other luxury fragrances

• For Kering, which bought Creed for €3.5 billion just two years ago, it's about cutting debt and refocusing on its core fashion business.

Zoom in: L'Oreal will get a 50-year license to develop fragrance and other beauty products under the names of Kering fashion labels Bottega Veneta and Balenciaga (plus Gucci, once an existing agreement with Coty expires).

• In addition to the €4 billion cash payment, due at closing in the first half of 2026, L'Oreal also will "pay royalties to Kering for the use of its licensed brands."
• The pair also will launch a 50/50 joint venture to explore new opportunities beyond fragrances and cosmetics.

The bottom line: Beauty dealmakers been focused lately on "mass-tige" — inexpensive products with prestige packaging — but this is a reminder that there's still a market for legit luxury.