Estée Lauder Companies Inc. is in talks to acquire Spanish beauty company Puig, according to multiple reports, in a deal that would create a major global beauty conglomerate.

Puig, which has a market valuation of approximately $10 billion, owns several high-profile beauty and fashion brands including Carolina Herrera and Charlotte Tilbury. The Spanish company has built a portfolio of luxury and premium brands across fragrance, makeup, and fashion categories.

News of the potential acquisition talks sent Estée Lauder shares lower in trading, reflecting investor concerns about the scale and timing of such a significant deal. The discussions come as Estée Lauder is implementing an ongoing turnaround plan to address various business challenges.

The potential merger would combine two major players in the global beauty industry, with Estée Lauder bringing its own stable of iconic brands including MAC, Clinique, and its namesake Estée Lauder cosmetics line. Such a combination would create significant scale in the competitive beauty market.

Neither company has officially confirmed the discussions, and it remains unclear whether the talks will result in a completed transaction. The beauty industry has seen increased consolidation in recent years as companies seek to expand their brand portfolios and global reach.