Estée Lauder & Puig: $40bn Merger Talks to Create Beauty Giant

March 24, 2026 Priya Shah – Business Editor Business

Estée Lauder and Puig, the Spanish owner of brands including Jean Paul Gaultier and Rabanne, confirmed Monday they are in discussions regarding a potential “business combination” that could create a $40 billion fashion and beauty group. The confirmation follows reports in the Financial Times and subsequent coverage by Reuters, the Guardian, and the BBC.

Estée Lauder, one of the world’s largest manufacturers of skincare, makeup, and fragrances, owns a portfolio of brands including Clinique, Bobbi Brown, and Tom Ford Beauty. Puig, which went public on the Madrid stock market in 2024, also controls Charlotte Tilbury, Carolina Herrera, and Dries Van Noten.

Both companies acknowledged the talks but stressed that no agreement has been reached. “No final decision has been made and no agreement has been reached,” Puig stated. “Until an agreement exists, it cannot be guaranteed that any transaction will take place or what its terms would be.”

The potential merger arrives as Estée Lauder navigates a business turnaround, having cut jobs last year amid sluggish sales. Shares in the company closed down almost 8% on Monday following news of the discussions, while Puig shares climbed 15% on Tuesday. Estée Lauder’s stock fell a further 9% on Tuesday.

Analysts at Citigroup noted the timing of the potential deal, stating that Estée Lauder “is in the early stages of a business turnaround with a deal of this size creating complexity and execution risk.” The firm also pointed out that Estée Lauder’s share price is down 80% from its all-time peak in 2021.

Despite the potential complexities, a combination with Puig could offer both businesses increased scale in the face of slowing consumer spending and rising inflation, potentially exacerbated by geopolitical tensions.

Puig, founded in 1914 and still largely controlled by the Puig family, has been actively acquiring brands in the fragrance and fashion sectors, completing 11 deals between 2011 and 2024. Last week, the Barcelona-based company appointed José Manuel Albesa as its first chief executive who is not a member of the Puig family, with Marc Puig remaining as executive chair.

Dan Coatsworth, head of markets at AJ Bell, highlighted a potential difference in sales frequency between the two companies. “Estee Lauder is focused on skincare, makeup and haircare, which are the type of products people buy more regularly than the designer clothing offered by Puig. The key area where there is a clear overlap between the two brands is fragrances and perfumes.”