Finance
Estee Lauder Nears Merger With Jean Paul Gaultier-Owner Puig, Ft Reports
Published by Global Banking & Finance Review®
Posted on March 23, 2026
2 min readLast updated: March 23, 2026
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Estee Lauder is reportedly close to finalizing a merger with Barcelona‐based beauty group Puig, creating a combined beauty powerhouse valued at around $40 billion, with Estee Lauder shares falling roughly 8 % on the news.
Estee Lauder is in discussion to merge with Jean Paul Gaultier-owner Puig
Potential Merger Between Estee Lauder and Puig: Details and Industry Impact
Overview of the Merger Discussions
March 23 (Reuters) - Estee Lauder is in discussions regarding a potential merger with Barcelona-based beauty group Puig, the companies said on Monday, amid a flurry of dealmaking in the beauty sector.
Shares of Estee Lauder, which has a market capitalization of around $31 billion, closed down about 7% following the news.
About Puig and the Status of Negotiations
Puig's Brand Portfolio and Statement
Puig, the company behind perfume brands Rabanne, Carolina Herrera and Jean Paul Gaultier, said no agreement has been reached on the potential merger and that there is no assurance regarding the deal or its terms.
Estee Lauder's Recent Business Moves
Estee, which is attempting to turn around its business amid sluggish demand in the U.S., had bought U.S. fashion label Tom Ford for $2.8 billion in 2022, its biggest deal so far.
Recent Mergers and Acquisitions in the Beauty Sector
Notable Deals in 2024 and 2025
The merger talks follow 2025 deals in the beauty sector, including Hailey Bieber's skincare brand Rhode being acquired by E.l.f. Beauty for about $1 billion.
Gucci-owner Kering.PA> also agreed last year to sell its beauty business to L'Oreal for 4 billion euros, while Coty launched a strategic review of its consumer beauty business, possibly leading to the sale of brands such as CoverGirl and Rimmel.
Financial Aspects and Market Implications
Structure and Potential Value of the Deal
Estee Lauder and Puig have discussed a combination involving a mix of cash and stock, the Wall Street Journal reported on Monday, citing people familiar with the talks. The Financial Times had also reported that the tie-up would create a $40 billion beauty giant.
Puig's Financial Performance
Recent IPO and Profit Growth
Puig, which had completed Spain's biggest initial public offering in nearly a decade in 2024, posted a 12% rise in 2025 net profit last month.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Alan Barona)
Key Takeaways
- •A merger between Estee Lauder and Puig could form a ~$40 billion beauty conglomerate.
- •Puig, known for brands like Rabanne, Carolina Herrera and Jean Paul Gaultier, staged Spain’s biggest IPO in nearly a decade in 2024.
- •Puig delivered record‐high 2024 revenues of €4.79 billion (+11.3 %) and profits of €531 million (+14 %), underpinning its strong financial footing.
Frequently Asked Questions about Estee Lauder nears merger with Jean Paul Gaultier-owner Puig, FT reports
1What companies are involved in the potential merger?
Estee Lauder and Barcelona-based beauty group Puig are involved in the potential merger.
2What is the estimated value of the Estee Lauder and Puig merger?
The estimated value of the merger is $40 billion.
3Which brands does Puig own?
Puig owns Rabanne, Carolina Herrera, and Jean Paul Gaultier.
4How did Estee Lauder's shares react to the merger news?
Shares of Estee Lauder were down approximately 8% following the news.
5When could the Estee Lauder-Puig deal be announced?
The deal could be announced as early as Monday, according to the report.