Estee Lauder in discussion to merge with Jean Paul Gaultier owner Puig
Sign up now: Get ST's newsletters delivered to your inbox
The deal could help drive Estee Lauder’s turnaround efforts as it battles sluggish consumer spending in the US.
PHOTO: REUTERS
NEW YORK – Estee Lauder is in talks regarding a potential business combination with Spanish beauty group Puig, the companies said on March 23, in a deal that would bring some of the world’s biggest beauty and fragrance brands, such as Tom Ford, Charlotte Tilbury, Rabanne and Clinique, under one roof.
The deal would create a US$40 billion (S$51 billion) luxury beauty powerhouse, and give the companies a leg up in the global fragrance industry, which is facing a slowdown in demand after several years of strong post-pandemic growth.
Shares of Estee Lauder, which has a market capitalisation of around US$31 billion, fell sharply on the news, ending the session more than 7 per cent lower on March 23.
The discussions between Estee and Puig come amid an uptick in deal-making in the beauty sector. In October, Gucci-owner Kering agreed to sell its beauty business to L’Oreal for US$4.7 billion, while Elf Beauty acquired Hailey Bieber’s make-up and skincare brand Rhode in 2025.
The deal with Kering gave L’Oreal fragrance line Creed, as well as long-term exclusive rights to develop fragrance and beauty products under Kering’s fashion labels, including Bottega Veneta and Balenciaga.
Part of the rationale behind merging Estee Lauder and Puig is that a combined company will better compete with L’Oreal, especially in the fragrance market, a source familiar with the deal said on March 23.
The deal could help drive Estee Lauder’s turnaround efforts as it battles sluggish consumer spending in the United States.
Puig, the company behind iconic perfume brands Rabanne, Carolina Herrera, Jean Paul Gaultier and Byredo, said that no agreement has been reached on the potential merger and that there is no assurance regarding the deal or its terms.
Estee bought US fashion label Tom Ford for US$2.8 billion in 2022, its biggest deal so far.
Puig, which had completed Spain’s biggest initial public offering in nearly a decade in 2024, posted a 12 per cent rise in 2025 net profit in February. REUTERS
