Estée Lauder, Puig Said to Advance Talks for Mostly Stock Deal

Estée Lauder Cos. and Spain’s Puig Brands SA are advancing in negotiations to combine, people familiar with the matter said, putting the two family-owned companies on track to create one of the world’s largest luxury beauty players.

The respective owners of brands including MAC, Le Labo, Charlotte Tilbury and Byredo are discussing a deal that would consist mostly of stock and could be formally announced within weeks, according to the people, who asked not to be identified because the matter is private.

As part of the deal, Puig Executive Chairman Marc Puigwould sit on the board and is expected ...