Estée Lauder in Merger Talks with Spanish Beauty Brand Puig

Global beauty company Estée Lauder is in merger talks with Spanish fashion and beauty company Puig. If the deal goes through, a global beauty giant with a scale of approximately $40 billion (about 60 trillion won) is expected to emerge.

On March 23 (local time), the Financial Times (FT) and the Wall Street Journal (WSJ) reported that Estée Lauder and Puig are discussing a merger, and that the transaction is likely to be structured as a mix of cash and stock.

The companies did not deny the report. Estée Lauder announced on its website, "We are discussing ways to integrate our business with Puig." The company added, "No final decision has been made yet, and no agreement has been reached at this time."

Estée Lauder’s market capitalization exceeds $30 billion, while Puig's is over $10 billion. If the two companies combine, a global beauty company valued at $40 billion is expected to be created. Last year, the combined sales of the two companies surpassed $20 billion. Estée Lauder owns brands such as M·A·C, Jo Malone London, Tom Ford, Dr.Jart+, and Aveda. Puig includes brands such as Byredo, Jean Paul Gaultier, and Charlotte Tilbury.

FT explained that, as concerns over slowing consumer spending and inflation continue to pressure the consumer goods and retail sectors, the potential merger could enable the companies to scale up. Estée Lauder has been restructuring for years to expand its market share and attract younger consumers through new brands. WSJ reported that, from Estée Lauder’s perspective, the deal would help solidify its leading position in the beauty sector.

This content was produced with the assistance of AI translation services.