Finance
Puig, Estee Lauder Founding Families to Meet for Combination Talks, Source Says
Published by Global Banking & Finance Review®
Posted on April 7, 2026
2 min readLast updated: April 7, 2026
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Puig and Estée Lauder founding families are meeting in New York this week to negotiate a possible combination—a cash-and-share deal aimed at forming a €20B+ premium beauty powerhouse listed in New York.
Puig and Estee Lauder in Advanced Merger Talks to Form Beauty Giant
Potential Merger Between Puig and Estee Lauder
Background of the Negotiations
MADRID, April 7 (Reuters) - The founding families of the Spanish firm Puig, which owns such brands as Rabanne and Nina Ricci, and U.S. cosmetics giant Estee Lauder will meet this week in New York to negotiate the terms of a potential business combination, a person with knowledge of the talks said on Tuesday.
Estee Lauder and Puig aim to reach an agreement in the coming weeks, the person told Reuters, speaking on condition of anonymity as the discussions remain private.
The source confirmed an earlier report from Spanish newspaper Expansion.
Brands Involved in the Potential Deal
Last month, Puig and Estee Lauder said they were exploring a deal that would create the world's largest premium beauty player, with brands including Tom Ford, Carolina Herrera, Rabanne, Jean Paul Gaultier, and Clinique under one roof.
Official Responses and Comments
Spokespeople for Puig declined to comment, while Estee Lauder was not available for comment outside of U.S. business hours.
Financial and Structural Aspects of the Merger
Changes to Reporting and Capital Markets Day
Puig was initially set to report its first-quarter sales and hold its capital markets day on April 14, but it has postponed the sales report to April 28 and has yet to announce a new date for its capital markets day.
Structure of the Proposed Transaction
The transaction would be structured as a cash-and-share public takeover bid by Estee Lauder for Puig, with the new entity listed on the New York Stock Exchange, Expansion said.
Impact on Family Control and Shareholders
The merger format being discussed would dilute the Lauder family's control, bringing it closer to the potential stake held by the Puig family, while Puig's non‑voting shareholders would receive cash or low‑voting shares, according to the Spanish newspaper.
Projected Market Impact
Analysts estimate the combined business would have revenue of just over 20 billion euros, making it the world's number-one premium beauty group ahead of the 15.6 billion euros at L'Oreal's Luxe division, which last October bought the beauty assets of Gucci-owner Kering.
Reporting Credits
(Reporting by Paolo Laudani and Andres Gonzalez; Editing by David Latona and Tomasz Janowski)
Key Takeaways
- •Meeting signals acceleration of merger discussions to form world’s largest premium beauty group, combining iconic brands across fragrance, makeup, and skincare; sources estimate €17–20B in annual revenues. (cincodias.elpais.com)
- •Deal likely to be structured as a mostly stock-and-cash public takeover of Puig by Estée Lauder with the enlarged entity listed on NYSE; Puig family to retain ~21.7% economic interest, Lauders ~26.7%, jointly controlling ~48%. (cincodias.elpais.com)
- •Strategic rationale: Puig’s strength in fragrance (72% of its 2025 net revenue) complements Estée Lauder’s dominance in skincare and global distribution, enabling scale against rivals like L’Oréal amid sector consolidation. (glossy.co)
References
Frequently Asked Questions about Puig, Estee Lauder founding families to meet for combination talks, source says
1What companies are involved in the potential merger?
Spanish firm Puig and U.S. cosmetics giant Estee Lauder are discussing a potential business combination.
2Where are the merger negotiations taking place?
Negotiations between Puig and Estee Lauder founding families are taking place in New York.
3What would the combined Puig and Estee Lauder company represent?
The combined entity would become the world's largest premium beauty group.
4How would the transaction be structured?
The deal would be a cash-and-share public takeover bid by Estee Lauder for Puig, with the new entity listed on the New York Stock Exchange.
5How much revenue would the merged group generate?
Analysts estimate the combined business would have revenue just over 20 billion euros.
