Estée Lauder Cos. is nearing a deal to buy Tom Ford for roughly $2.8 billion, building on a longstanding licensing deal and marking the cosmetics giant’s largest-ever acquisition, according to people familiar with the matter.
prevailed in an auction for the high-end fashion label that drew competition from big names in luxury including Kering SA
The French company was poised to win the auction earlier this month, The Wall Street Journal reported.
Should the talks not hit a last-minute snag, a deal could be announced Tuesday, one of the people said.
The Financial Times reported on Friday that Estée Lauder was set to clinch a deal for closely held Tom Ford.
The Journal reported in August that Estée Lauder, which sells brands including Clinique and M.A.C., was talking to Tom Ford about a deal that could have been worth at least $3 billion. Volatility in markets and fears of a softening economy appear to have dented the price tag somewhat.
An expanded version of this report appears on WSJ.com.
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