Estee Lauder (EL) said it's in talks to buy Puig Brands 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), while Estee Lauder closed on Monday at around $30 billion. Bloomberg's Companies Reporter Clara Lizarraga joins to discuss.

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