Beauty Giant Estee Lauder in Merger Talks with Spanish Company Puig

Cosmetics powerhouse Estee Lauder has acknowledged ongoing discussions about a potential merger with Spanish beauty company Puig. The deal would bring together popular brands like MAC, Clinique, and Jean Paul Gaultier under one corporate umbrella, potentially creating a $40 billion beauty empire.

NEW YORK — The cosmetics giant Estee Lauder has acknowledged ongoing discussions with Spanish beauty company Puig about a potential merger that could unite popular brands including MAC, Clinique, Charlotte Tilbury, and Jean Paul Gaultier within a single organization.

The New York-based Estee Lauder Cos. has verified these negotiations are taking place, though the company emphasized that no deal has been finalized with the Spanish firm, which has operated for over a century.

The beauty conglomerate has been working to reverse declining revenues, experiencing drops in sales for three consecutive years. Earlier in 2025, the company announced potential workforce reductions of up to 7,000 positions through fiscal 2026, representing more than 11% of its total employees. At that time, CEO Stéphane de La Faverie explained that Estee Lauder was restructuring its business approach to become “leaner, faster, and more agile.”

The Spanish company Puig manages various makeup, skincare, and fragrance labels including Nina Ricci, Jean Paul Gaultier, and Dr. Barbara Sturm. Puig became publicly traded on Madrid’s stock exchange in early 2024, and its shares surged over 15% during Tuesday’s market session.

According to Jeffries analyst Sydney Wagner, combining Estee Lauder and Puig would establish a corporation worth more than $40 billion and would strengthen the American company’s presence in the fragrance market, which represents the majority of Puig’s business portfolio.

Wagner noted that despite fragrances continuing to perform well as a product category, competition from independent brands is growing more intense, while L’Oreal has strengthened its market position.

Estee Lauder’s stock price rose modestly during pre-market trading on the New York Stock Exchange.