Estee Lauder-Puig Talks Collapse After Charlotte Tilbury Tension

The proposed multibillion-dollar tie-up between Puig Brands SAand Estee Lauder Cos. was scuppered by makeup artist Charlotte Tilbury’s demands regarding her compensation in the deal, according to people familiar with the matter.

Puig and Estee Lauder have been holding talks about a potential business combination since March. On Thursday, they each issued statements saying those discussions had ended, but neither elaborated on the reason.

One sticking point was a change-of-control clause held by Tilbury, who sold her eponymous brand to Puig in 2020, said the people, who weren’t authorized to speak publicly. That wasn’t the only issue that ...