PARIS L’Oréal has entered into exclusive negotiations with PPR over a strategic agreement for YSL Beauté, the PPR-owned Gucci Group’s beauty division.

On Wednesday, the French beauty giant proposed to pay PPR 1.15 billion euros, or $1.68 billion at current exchange, for YSL Beauté Holding, including its Roger & Gallet subsidiary. YSL Beauté is part of Gucci Group, whose parent is French conglomerate PPR.

Once the agreement is signed, as it’s expected to be in coming weeks, L’Oréal would obtain an exclusive and long-term worldwide license for the use of Yves Saint Laurent and Boucheron brands in the fragrance and cosmetics categories. Also under terms of the agreement, L’Oréal would take over the licenses for the Stella McCartney, Oscar de la Renta and Ermenegildo Zegna brands in the fragrances and cosmetics categories.

“This proposed agreement represents a great opportunity for L’Oréal and its luxury products division,” said Jean-Paul Agon, L’Oréal’s chief executive officer, in a statement. “Yves Saint Laurent is a mythical French luxury brand. It is admired the world over and is particularly complementary with our current brands. We are convinced that its integration into our luxury products division would speed up its development. This strategic agreement will reinforce our position in the luxury cosmetics market.”

For more, see Thursday’s issue of WWD.

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