The share price of Kering, the French luxury group that owns Gucci and other brands, jumped sharply Monday after it announced the $4.6-billion sale of its beauty products division to 尝鈥橭谤别补濒.
Its shares soared more than five per cent at the opening of Paris trading, following its announcement Sunday of the deal that would also give 尝鈥橭谤别补濒 50-year licences to develop and distribute products under Kering鈥檚 Gucci, Bottega Veneta and Balenciaga labels.
尝鈥橭谤别补濒鈥檚 shares rose a modest 0.6 per cent, in line with the 0.5 per cent increase for the Paris CAC 40 index.
Kering has been struggling financially for several years, and in July said its first-half profits had slipped by nearly half on a 16-per cent drop in turnover.
Proceeds of the sale of its beauty division, which includes its leading perfume brand Creed, will go to alleviate the 9.5 billion euros ($11 billion) in debts it has racked up.
Kering is to publish its third-quarter results on Wednesday.
The announced sale to 尝鈥橭谤别补濒 is subject to regulatory approval, and if it goes ahead payment is expected in the first half of 2026.
尝鈥橭谤别补濒 would pick up the 50-year exclusive licences after Kering鈥檚 current licence with American company Coty expires in 2028.
Kering鈥檚 new CEO Luca de Meo, who took the helm just a month ago, has called the deal 鈥榓 decisive step鈥� for the French group.
He is trying to turn around Kering鈥檚 fortunes, pulled down by difficulties at Gucci, which accounts for 44 per cent of the group鈥檚 turnover and two-thirds of its operating profit.