Estee Lauder in talks to merge with Spanish beauty giant Puig

The Estée Lauder Companies has entered discussions with Puig regarding a potential business combination that could see the two companies merge.

In a statement, Estée Lauder said no final decision has been made and no agreement has been reached. The company added that there can be no assurance a deal will proceed or what its terms might be unless a formal agreement is signed.

Estée Lauder is a global manufacturer, marketer and seller of skincare, makeup, fragrance and haircare products, with a portfolio of brands including Clinique, MAC Cosmetics, La Mer, Bobbi Brown Cosmetics, DECIEM, Jo Malone London. Its products are sold in approximately 150 countries and territories.

The discussions come as the US-based company continues its "Beauty Reimagined" transformation plan, now in its second year, which is aimed at improving performance and returning the business to growth.

Puig, which owns brands including Charlotte Tilbury and Byredo, is a Spanish fashion and beauty group. The company recently appointed José Manuel Albesa as CEO, while Marc Puig transitioned to the sole role of Executive Chairman.

According to Puig, the leadership change is intended to align its governance structure more closely with widely recognised practices for listed companies and to strengthen executive oversight as it enters its next phase of development.

A potential deal would mark a major transaction in the global beauty industry, bringing together two major players and their extensive portfolios. While specific details remain undisclosed, reports suggest the combined value of the merger could reach approximately $40 billion.