Estée Lauder Explores Merger with Puig
US cosmetics giant Estée Lauder is currently in discussions regarding a potential merger with Puig, the Spanish company known for popular fragrances such as Rabanne and Jean Paul Gaultier.
Estée Lauder is recognized as one of the world's leading manufacturers of skin care, make-up, and fragrances, with ownership of brands including Clinique, Bobbi Brown, and Tom Ford.
According to the Financial Times, a merger could result in a $40 billion (£30 billion) beauty conglomerate. However, Estée Lauder has stated that no final decision has been reached.
"Unless and until an agreement is signed between the companies, there can be no assurances regarding the deal or its terms," the company said in a statement.
About Puig
Puig, headquartered in Barcelona, was founded in 1914 and remains under the control of the Puig Family. The group also owns the fashion label Dries Van Noten and fragrance brand Carolina Herrera. Puig distributes its products in 150 countries and reported revenue exceeding €5 billion (£4.3 billion) in 2025.
Estée Lauder Company Background
Estée Lauder, who passed away in 2004, established the cosmetics company bearing her name in 1946 in New York alongside her husband Joseph. The company began with just four products and has since grown to become the second largest cosmetics firm globally, trailing only L'Oréal.
Despite its growth, Estée Lauder faced challenges last year, including job cuts due to sluggish sales, and is actively working to revitalize its business.
Following news of the potential merger, shares of Estée Lauder closed nearly 8% lower on Monday.
Context in the Beauty Industry
This potential merger comes amid other significant transactions in the beauty sector. For example, Hailey Bieber's skincare brand Rhode was recently acquired by E.l.f. Beauty in a deal valued at up to $1 billion.
Additionally, Gucci-owner Kering agreed last year to sell its beauty business to L'Oréal for 4 billion euros.
