L'Oréal, the world's largest cosmetics company, is buying Gucci's beauty division. Photo: AP PHOTO

Gucci owner Kering has agreed to sell its beauty business to L'Oreal for four billion euros ($A7.18 billion), as new CEO Luca de Meo moves to tackle the luxury group's high debt and refocus on its core fashion business.

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Under the deal, French beauty giant L'Oreal will acquire Kering's fragrance line Creed, as well as rights to develop products under Kering's fashion labels Bottega Veneta and Balenciaga under a 50-year exclusive licence.

The sale is a major step towards reducing Kerin

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