Cosmetics giant Estée Lauder in merger talks with owner of Jean Paul Gaultier and Rabanne

Estée Lauder and Puig hold merger talks

Estée Lauder is in discussions over a potential merger with Puig, the Spanish owner of fragrance brands including Rabanne and Jean Paul Gaultier.

If completed, the deal would create a beauty group worth about $40bn (£30bn), according to the Financial Times. Estée Lauder said no final decision had been made.

In a statement, the company said: "Unless and until an agreement is signed between the companies, there can be no assurances regarding the deal or its terms."

Brands and scale

Estée Lauder is one of the world’s biggest makers of skincare, make-up and fragrances, with brands including Clinique, Bobbi Brown and Tom Ford. Founded in New York in 1946 by Estée Lauder and her husband Joseph, the company began with four products and has grown into the world’s second-largest cosmetics company after L'Oréal.

Puig, based in Barcelona, was founded in 1914 and remains controlled by the Puig family. In addition to Rabanne and Jean Paul Gaultier, it owns Dries Van Noten and Carolina Herrera.

The company sells products in 150 countries and reported revenue of more than €5bn (£4.3bn) in 2025.

Industry backdrop

The talks come as Estée Lauder tries to revive its business after cutting jobs last year amid sluggish sales. Its shares closed almost 8% lower on Monday after news of the potential deal.

The possible merger also follows a run of deals in the beauty sector. Hailey Bieber’s skincare brand Rhode was recently acquired by E.l.f. Beauty in a deal worth up to $1bn, while Gucci-owner Kering agreed last year to sell its beauty business to L'Oréal for €4bn.