October 4, 2019 / 4:44 PM / 17 days ago

Safilo renews key Gucci supply accord with Kering for three years

FILE PHOTO: The logo of Kering is seen during the company's 2015 annual results presentation in Paris, France, February 19, 2016. REUTERS/Charles Platiau

MILAN (Reuters) - Italian eyewear maker Safilo (SFLG.MI) has renewed for three years an accord with French luxury giant Kering KRGI.MI to manufacture and supply Gucci-branded products, the companies said on Friday.

The current accord, which had replaced a license agreement for the Gucci brand that Safilo lost after Kering set up its in-house eyewear business, expires in December 2020. The new one will kick in from January.

Shares in Safilo closed up almost 12% on Friday. The stock had risen earlier this week on speculation that Kering could be looking at the Italian company as a possible takeover target.

(This story removes extraneous word in first paragraph)

Reporting by Claudia Cristoferi, editing by Valentina Za

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