Kering SA shares surged as the owner of the struggling Gucci fashion label prepares to name the chief executive officer of Renault SA as its next CEO in a bid for a turnaround.

French luxury group and Gucci-owner Kering has announced the appointment of former Renault CEO Luca de Meo as the new chief of the group. The strategic move strengthens the group's leadership and supports its growth trajectory.

After impressing with his turnaround of French automaker Renault, Luca De Meo is widely expected to be named as the new boss of Gucci owner and luxury powerhouse Kering.