PARIS(Reuters) -Gucci owner Kering has agreed to sell its beauty business to L'Oreal for 4 billion euros ($4.66 billion), the company said on Sunday, as new CEO Luca de Meo moves to tackle the luxury group's high debt and refocus on its core fashion business.

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

($1 = 0.8576 euros)