The Estée Lauder Corporations confirms ongoing deal talks with Puig

The Estée Lauder Corporations confirmed on Monday, March 23, that it’s in talks with Spanish magnificence group Puig to doubtlessly merge the 2 firms. “No closing choice has been made, and no settlement has been reached,” the wonder large stated in a press release.

Initially disclosed by the Monetary Occasions, the data was corroborated by the group chaired by Marc Puig in related phrases.

If accomplished, the deal would mix the 2 firms into a gaggle producing roughly USD 19.7 billion in income.

The discussions between The Estée Lauder Corporations and Barcelona-based Puig come simply months after Gucci-owner Kering agreed to promote its magnificence enterprise to L’Oreal for USD 4.7 billion.

The deal might assist drive The Estee Lauder Corporations’s efforts to revitalize its enterprise. A mixed firm would additionally higher compete with L’Oréal. The group owns manufacturers akin to Estée Lauder, Clinique, Jo Malone, Kilian, Tom Ford or La Mer.

For its half, Puig owns a diversified portfolio of perfume manufacturers, together with Rabanne, Carolina Herrera, Jean Paul Gaultier, Dries Van Noten, Nina Ricci, Byredo, L’Artisan Parfumeur and Penhaligon’s, in addition to the British make-up model Charlotte Tilbury.

With Puig extra centered on perfume and The Estée Lauder Corporations extra centered on skincare and make-up, the 2 portfolios seem extremely complementary.

The information of a doable merger comes lower than one week after Puig introduced that Jose Manuel Albesa had taken over the chief govt officer reins from Marc Puig, who had been operating the Spanish magnificence and trend powerhouse since 2004 and stepped as much as develop into govt chairman.