Estée Lauder and the fragrance company Puig are discussing a merger that could unite brands like MAC, Clinique, Charlotte Tilbury, and Jean Paul Gaultier under one organization.
Estée Lauder acknowledged the talks but stated that no deal has been finalized with the historic Spanish firm.
The U.S. cosmetics multinational has been working to halt a decline in sales, as revenue has dropped for three consecutive years.
In 2025, they announced plans to eliminate up to 7,000 positions by the 2026 fiscal year, which represents over 11 percent of its staff. CEO Stéphane de La Faverie stated then that the firm was changing its operational framework to become “more streamlined, quicker, and more adaptable.”
"Últimamente, Estee Lauder ha perdido su posición y necesita hacer algo drástico para recuperar su liderazgo", afirmó Dan Coatsworth, líder de mercados en AJ Bell.
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"An acquisition of Puig presents an intriguing idea, yet history indicates that merging two companies isn't a foolproof formula for success," he added.
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Puig manages cosmetic, skincare, and fragrance brands including Nina Ricci, Jean Paul Gaultier, and Dr. Barbara Sturm.
The firm launched its initial public offering on the Madrid Stock Exchange at the beginning of 2024.
According to Jefferies’ Sydney Wagner, a merger of Estée Lauder and Puig would result in a company valued over $40bn (€34.5bn), enhancing the New York firm’s position in fragrances, which constitute the majority of Puig’s offerings.
Although fragrances continue to be a prominent category, Wagner noted that competition from independent brands is growing, and L'Oréal has bolstered its standing.
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Estée Lauder's shares dropped over 7.5 percent around 15.30 CET on the New York Stock Exchange.