Estee Lauder and Puig Families Meet for Merger Talks

The founding families of Spain-based beauty firm Puig and the United States cosmetics giant ESTEE LAUDER COMPANIES-CL A are scheduled to meet in New York this week to negotiate the terms of a potential business combination. This strategic move aims to create the world's largest premium beauty player, bringing prestigious brands such as Tom Ford, Carolina Herrera, Rabanne, Jean Paul Gaultier, and Clinique under a single corporate entity.

According to a source with knowledge of the discussions, the companies intend to reach a formal agreement in the coming weeks. The transaction is expected to be structured as a cash-and-share public takeover bid by Estee Lauder for Puig, with the combined company listed on the New York Stock Exchange.

"Estee Lauder and Puig aim to reach an agreement in the coming weeks."

The merger format currently under discussion would reportedly dilute the Lauder family's control, bringing their influence closer to the stake held by the Puig family. Additionally, non-voting shareholders in the Spanish firm are expected to receive cash or low-voting shares as part of the deal.

Industry analysts estimate that the merged entity would generate annual revenue exceeding 20 billion euros. This would position the new group as the global leader in premium beauty, surpassing the Luxe division of L'OREAL, which recorded 15.6 billion euros in revenue. The move follows a period of consolidation in the sector, including L'Oreal's acquisition of beauty assets from KERING, the owner of Gucci, last year.

In light of the ongoing negotiations, Puig has adjusted its financial reporting schedule. The company has moved its first-quarter sales report from April 14 to April 28 and has yet to announce a new date for its capital markets day. While Puig spokespeople declined to comment on the matter, Estee Lauder was not available for comment outside of standard business hours.