KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
French luxury powerhouse Kering SA, the owner of Gucci, is close to finalizing the sale of its beauty division to L’Oréal, according to people familiar with the matter. The deal, reportedly valued at around US$4 billion (RM16.9 billion), could be announced as soon as next week.
If completed, the acquisition would give L’Oréal, the world’s largest beauty conglomerate, control of fragrance house Creed and rights to develop cosmetics and perfumes for Kering’s high-end fashion labels including Bottega Veneta, Balenciaga, and Alexander McQueen. The move would further strengthen L’Oréal’s dominance in the luxury beauty segment, complementing its existing portfolio that includes brands like Yves Saint Laurent Beauté and Giorgio Armani Beauty.
A Strategic Move for Kering
The sale represents a significant step for Kering’s new CEO Luca De Meo, who took office in September. De Meo’s top priority has been to address the group’s €9.5 billion debt and rebuild investor confidence, which had been shaken by slowing sales at Gucci and a broader luxury sector downturn, particularly in China.
Analysts see the divestment as a pragmatic reset for Kering — freeing up capital to refocus on revitalizing Gucci and strengthening its fashion portfolio. Since De Meo’s appointment in mid-June, Kering’s shares have surged about 60%, signaling strong market approval of his turnaround strategy.
L’Oréal Expands Its Luxury Reach
For L’Oréal, the acquisition would mark another bold expansion in the ultra-luxury space. By adding Creed — a storied fragrance brand known for its cult following and premium positioning — L’Oréal could further cement its lead over rivals like Estée Lauder and Coty.
The cosmetics giant has also reportedly been in discussions with Armani Group, following reports that Giorgio Armani’s will named L’Oréal as one of the preferred buyers for a future minority stake in his fashion house.
Market Context
Kering launched its beauty division only in 2023 after acquiring Creed for €3.5 billion in cash, signaling an initial ambition to compete directly with L’Oréal and LVMH in the luxury fragrance space. However, rising debt and the need for liquidity have since prompted a strategic rethink.
With luxury demand softening globally — particularly in China, a key market for premium fashion — Kering’s pivot back to its core brands may be both timely and necessary.
If confirmed, the deal will represent a rare win-win scenario: Kering gains financial breathing room, while L’Oréal secures another jewel in its crown — reinforcing its dominance in the global beauty industry.
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