Estée Lauder in talks on merger with Jean Paul Gaultier owner Puig

Combination of US and Spanish companies would create $40bn fashion and beauty group

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US cosmetics company Estée Lauder is in talks over a potential merger with Spanish group Puig, the owner of brands including Jean Paul Gaultier and Rabanne, to create a $40bn fashion and beauty giant.

Estée Lauder is one of the world’s biggest manufacturers of skin care, makeup and fragrances with a portfolio that includes Clinique, Bobbi Brown and Tom Ford Beauty.