Estée Lauder in Talks to Buy Puig to Create Beauty Giant (3)

Estée Lauder Cos. said it’s in talks to buy Puig Brands SA in a deal that would create a cosmetics giant with about $20 billion in annual sales.

The companies declined to offer details on the terms. Puig, based in Spain, has a market value of about €10 billion ($11.6 billion).

A takeover of the Spanish company would give Estée Lauder such well-known perfume and fashion brands as Rabanne, Jean Paul Gaultier and Carolina Herrera, helping it compete better against the world’s largest cosmetics company, L’Oréal SA. For Puig, which generated about €5 billion in sales last year, the ...