Negotiating the E.L.C.–Puig Prenup

While the prospect of an Estée Lauder Companies–Puig megamerger has electrified the beauty industry, plenty of questions remain—including whether the resulting $35 billion entity would pose an actual threat to the L’Oréal juggernaut.

“Lauder and Puig probably both feel they are too small to compete effectively with L’Oréal, and joining forces has some merit,” a Lauder insider told Puck. Photo-Illustration: Puck; Photos: Kevin Mazur/Getty Images for The Estée Lauder Companies/Alberto Paredes/Europa Press via Getty Images

Rachel Strugatz

March 25, 2026

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The beauty industry was aflutter this week following a Financial Times report that Puig and The Estée Lauder Companies have entered negotiations to combine their respective portfolios and create a $40 billion beauty and fashion mega-giant. Within minutes of publication, both companies released identical statements confirming they’re “in discussions regarding a potential business combination,” and adding, of course, that no “final decision has been made, and no agreement has been reached.”