Puig mulled ‘arrangement’ with Kering before Estée Lauder Companies merger talks

By Alessandro Carrara | Published: 1-Jun-2026
Finance

Puig had explored a potential ‘long-term licensing arrangement’ with Kering that did not come to fruition, which had occurred prior to Estée Lauder Companies proposing a merger with the Spanish giant, which was recently terminated

Puig has revealed it explored a potential partnership with Kering before the proposed US$40bn merger talks with Estée Lauder Companies (ELC) happened, which has since collapsed.

Speaking during Puig’s Annual General Meeting (AGM) 2026 on 29 May, streamed via a webcast, Executive Chairman Marc Puig said Kering had explored a “long-term licensing arrangement” with the company.

Marc Puig said during the webcast: "Those discussions, however, did not result in a transaction.”

After these talks failed to amount to anything, Kering eventually went on to offload its beauty division, Kering Beauté, to L’Oréal in 2025 in a historic €4bn deal.

The now completed agreement included luxury fragrance brand House of Creed, as well as the signing of exclusive 50-year beauty and fragrance licences for the Kering brands. 

This includes the creation, development and distribution of fragrance and beauty products under the Bottega Veneta and Balenciaga brands.

The deal also gives L’Oréal the rights to enter into a 50-year exclusive license agreement with Gucci.

ELC revealed it was in “discussions” with Puig around a potential merger of the two companies back in March 2026.

The transaction would have seen the American conglomerate merge its business with the Spanish beauty giant, which owns beauty brands Byredo and Jean Paul Gaultier.

The deal between the MAC Cosmetics-owner and Puig was valued at around $40bn, according to reports.

However, ELC and Puig have since ended their discussions over a potential merger, confirming the deal will not go ahead. 

Cosmetics Business has contacted Puig, Kering and ELC for a statement.

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