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 L'Oreal .

Its shares soared more than five percent at the opening of Paris trading, following its announcement Sunday of the deal that would also give L'Oreal 50-year licences to develop and distribute products under Kering's Gucci, Bottega Veneta and Balenciaga labels.

L'Oreal's shares rose a modest 0.6%, in line with the 0.5% 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% drop in turnover.

Proceeds of the sale of its beauty division, which includes its leading perfume bra

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