Estée Lauder in Merger Talks With Puig to Form $40bn Beauty Giant
Estée Lauder Companies is in discussions over a potential merger with Spanish fragrance and fashion group Puig, in a move that could reshape the global beauty industry.
If completed, the deal could create a combined company valued at around $40 billion, according to reports. However, Estée Lauder cautioned that negotiations are ongoing and no final agreement has been reached.
Estée Lauder is one of the world’s leading beauty companies, with a portfolio that includes major brands such as Clinique, Bobbi Brown and Tom Ford Beauty.
Puig, headquartered in Barcelona, owns globally recognised fragrance and fashion labels including Rabanne, Jean Paul Gaultier and Carolina Herrera. The company, founded in 1914 and still controlled by the Puig family, operates in more than 150 countries and reported revenues exceeding €5 billion in 2025.
The potential merger comes at a time when Estée Lauder is seeking to reinvigorate growth after a period of slowing sales that led to job cuts last year. The company, founded in 1946 in New York by Estée Lauder, has grown into the world’s second-largest cosmetics firm behind L’Oréal.
Investor reaction to the news has been cautious, with Estée Lauder’s shares falling nearly 8% following reports of the talks.
The discussions also reflect a broader wave of consolidation in the beauty sector. Recent deals include the acquisition of Hailey Bieber’s skincare brand Rhode by e.l.f. Beauty, as well as a €4 billion agreement by Kering to sell its beauty business to L’Oréal.
Industry analysts say a merger between Estée Lauder and Puig would significantly strengthen their global reach, combining strong portfolios in skincare, cosmetics and fragrances to better compete in an increasingly competitive market.
