U.S. cosmetics giant Estee Lauder and Spanish firm Puig are advancing talks to combine in a deal that would consist mostly of stock, Bloomberg News reported on Wednesday, citing people familiar with the matter.
The two family-owned companies last month said they were exploring a merger that would create a $40 billion luxury beauty group bringing brands such as Tom Ford, Carolina Herrera, Rabanne and Clinique under one roof.
The deal could be formally announced within weeks, the report added.
As part of the deal, Puig Executive Chairman Marc Puig would sit on the board and is expected to be crucial to the integration of the two companies, according to the report.
Estee Lauder and Puig did not immediately respond to Reuters’ requests for comment.
Source: Reuters.com