Paris, Oct. 22 -- Gucci-owner Kering has sold its beauty business to French beauty giant L'Oreal in a 4-billion-euro deal, media reports said.

According to a Reuters report, this is the first strategic move by Kering's new CEO, Luca de Meo, that will help cut down the company's debt pile.

The report noted that de Meo's move is a major shift from one of his predecessor Francois-Henri Pinault, who acquired Creed in 2023 for 3.5 billion euros in 2023.

Analysts have lauded L'Oreal for the deal, which will be the company's largest acquisition to date.

Investors have welcomed the move as shares of Kering jumped 4.8% on on Monday while L'Oreal rose 1.2%.

Creed is one of the most exciting brands in the growing luxury fragrances area, the rep...