L’Oréal, the French cosmetics group, has made a €1.15bn ($1.68bn) offer to buy YSL Beauté from French retailer PPR, gaining the licence to make Stella McCartney perfumes, as it seeks to step up its presence in luxury cosmetics.

The formal offer, which represents the enterprise value of YSL, will also give L’Oréal the Roger & Gallet brand as well as licences for Yves Saint Laurent and Boucheron in perfumes and cosmetics. The YSL group has annual sales of €626m.