PARIS French luxury group Kering, which is struggling to revive sales at its star brand Gucci, said on Thursday it was buying a 30% stake in Italian fashion label Valentino from Qatari investment fund Mayhoola for 1.7 billion euros ($1.87 billion) in cash.

The agreement includes an option for Kering to purchase the whole of Valentino's share capital no later than 2028.

"The transaction is part of a broader strategic partnership between Kering and Mayhoola, which could lead to Mayhoola becoming a shareholder in Kering," Kering said in a statement.

Valentino, one of Italy's most famous fashion labels, has 211 directly operated stores and booked revenues of 1.4 billion euros in 2022.

Kering will have board representation at the Italian brand, the French group said. Mayhoola, which bought Valentino in 2012, "will remain the majority shareholder with 70% of the share capital and will continue to execute on the successful brand elevation strategy."

($1 = 0.9093 euros)

(Reporting by Mimosa Spencer, editing by Silvia Aloisi)