Estée Lauder and Spanish perfume maker Puig are in talks for a potential €35bn merger to unite brands like MAC, Clinique, Charlotte Tilbury, and Jean Paul Gaultier. Though negotiations are ongoing, no agreement has been finalized.
Estée Lauder has been struggling with declining sales, cutting around 7,000 jobs to streamline operations. The proposed merger could strengthen both companies' positions in the beauty market, particularly in fragrances where Puig specializes. However, experts caution that merging can be risky.
Estée Lauder's shares fell over 7.5% on the NYSE, while Puig's rose nearly 13% in Madrid.