Estée Lauder Companies (ELC) has allegedly commissioned J.P. Morgan to structure a financing package for its merger with Spanish beauty firm Puig, according to a new report.
The US beauty giant is rumoured to have requested the leader in investment banking to structure a financing package of about €5bn to fund the deal, sources reportedly told Spanish newspaper Expansion.
ELC would allegedly offer Puig a takeover deal consisting of a mixed consideration of cash and shares, according to ongoing discussions, claimed sources with knowledge of the deal that spoke to the publication.
Expansion did not cite sources of the information by name.
Cosmetics Business has reached out to ELC and Puig for comment.
ELC first announced that it is in “discussions” with Puig around a potential merger on 23 March.
If the transaction goes through, it would see the American conglomerate merge its business with the Spanish beauty giant.
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It is rumoured that the deal between the two companies would be a combined value of around US$40bn, according to reports.
The founding families of ELC and Puig allegedly met up in New York, US, earlier this month to discuss the terms of the business combination.
ELC’s 25-strong portfolio spans trusted heritage beauty brands, from its eponymous line Estée Lauder and MAC Cosmetics, to Clinique, La Mer and Jo Malone London.
Plus, more recent acquisitions such as Deciem.
Puig has 17 digitally native, luxury and challenger brands in its portfolio, from make-up giant Charlotte Tilbury, to fragrance players Byredo, Carolina Herrera, Rabanne and Jean Paul Gaultier.
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