L'Óreal will produce fragrances and cosmetics for Italian fashion label Valentino, enhancing its perfumes business by winning a licence previously held by Spain's Puig.
The French beauty firm's luxury products division already makes fragrances and cosmetics for Armani and Saint Laurent as well as its own labels such as Lancome.
It is competing with US cosmetics group Coty which became the world's leading perfume producer by buying Procter & Gamble's beauty division in 2015, and also has licences for brands like Gucci or Hugo Boss.
"L'Óreal aims to become the world leader in perfumes. This license should allow us to reach that goal," a spokeswoman said.
L'Óreal did not disclose the terms of the agreement, which will become effective from 2019, after regulatory approvals. The contract with Puig was due to expire at the end of 2018.
News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.
