By 
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.
Estée Lauder
EL,
-3.31%
prevailed in an auction for the high-end fashion label that drew competition from big names in luxury including Kering SA
KER,
-0.33%.
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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