Key Takeaways:Family divisions at Estée Lauder and Puig are at the heart of the acquisitions talks, underway since the second half of 2025.The tie-up follows years of failed attempts by Estée Lauder to acquire Puig before it went public. A merger would help the combined company better compete with French rival L’Oréal.Estée Lauder is in discussions to acquire Puig in an agreement that could create a stronger challenger to industry leader L’Oréal, in what would be the biggest beauty deal to date.The New York–based cosmetics group behind La Mer, Clinique, and its namesake brand Estée Lauder, and the Spanish owner of Rabanne, Jean Paul Gaultier, and Charlotte Tilbury, said in separate statements on Monday that no decision has been made and no agreement has been reached “over a potential business combination.”“Unless and until an agreement is signed between the companies, there can be no assurances regarding the deal or its terms,” the companies said.The Financial Times reported earlier Monday that the companies were nearing a business combination. Shares of Estée Lauder fell close to 8% to around $79 following the report. Spain’s benchmark IBEX 35 index had already closed at the time of the announcement, but shares in Puig opened up around 14% to €17.79 ($20.61).The companies have been in talks over a potential merger for several months, dating back to the second half of 2025, according to sources close to the situation. However, divisions within both the Lauder and Puig families have so far prevented an agreement.