Estee Lauder confirms talks with Spanish perfume maker Puig

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NEW YORK (AP) — Estee Lauder and the perfume maker Puig are in merger talks that would potentially put brands like MAC, Clinique, Charlotte Tilbury and Jean Paul Gaultier under one roof.

Estee Lauder Cos. confirmed the discussions but said that no agreement has been reached with the century-old Spanish company.

Talks of an acquisition could be seen as a significant strategic shift for Estee Lauder, which early last year announced a sizeable restructuring for a company that had posted declining revenue in each of the past three years.

Shares slid 8% on Tuesday.

The New York company said in February 2025 that it could possibly cut as many as 7,000 jobs by fiscal 2026, more than 11% of its workforce. New CEO Stéphane de La Faverie said at the time that Estee Lauder was transforming its operating model to be “leaner, faster, and more agile.”

Puig oversees makeup, skin care and fragrance brands like Nina Ricci, Jean Paul Gaultier and Dr. Barbara Sturm. The company went public on the Madrid Stock Exchange in early 2024. Its stock jumped more than 15% in Tuesday trading.

A merger between Estee Lauder and Puig would create a company valued at more than $40 billion, Jeffries’ Sydney Wagner said wrote, and would give the New York company a stronger position in fragrances, which make up most of Puig's portfolio.

And while fragrances remains a strong category, Wagner said competition from indie brands is intensifying and L'Oreal has boosted its position.