Highlights
- Estée Lauder enters early-stage merger discussions with Spanish beauty group Puig.
- Proposed tie-up could create a cosmetics giant valued at around $40bn globally.
- Companies confirm no agreement yet as talks continue without finalised terms.
Merger talks progress
Estée Lauder is one of the world’s largest manufacturers of skincare, make-up and fragrances, with a portfolio that includes brands such as Clinique, Bobbi Brown and Tom Ford.
Founded in New York in 1946 by Estée Lauder and her husband Joseph, the company has grown from selling four products to becoming the world’s second-largest cosmetics group after L'Oréal.
Puig, headquartered in Barcelona and founded in 1914, remains controlled by the Puig family. The company owns fragrance and fashion brands including Rabanne, Jean Paul Gaultier, Carolina Herrera and Dries Van Noten.
It operates in 150 countries and reported revenues of more than €5bn (£4.3bn) in 2025.
The potential merger comes as the global beauty sector sees increased consolidation and dealmaking. Recent activity includes the acquisition of Rhode, founded by Hailey Bieber, by e.l.f. Beauty in a deal worth up to $1bn.
In another move, luxury group Kering agreed to sell its beauty business to L'Oréal for €4bn.
Estée Lauder has faced challenges in recent months, including job cuts linked to slower sales, and is seeking ways to strengthen its position in the market.
Shares in the company closed nearly 8 per cent lower on Monday following news of the potential merger.
The outcome of the talks could have a significant impact on the global cosmetics industry if a deal is finalised.
