Investing.com -- Estee Lauder's chief executive said on Tuesday that discussions with Puig regarding a potential combination remain underway, though no announcement is ready.

"We are in discussion ... when we are ready to announce when we're over, we will keep you posted," CEO Stephane de La Faverie said at the FT Business of Luxury Summit in Apulia, Italy.

The two companies announced in March they were in talks over a potential tie-up. A combination would bring brands including Tom Ford, Carolina Herrera, Rabanne, Jean Paul Gaultier and Clinique under one roof, creating the world's largest premium beauty player.

De La Faverie said acquisitions have long been part of Estee Lauder's strategy.

"Organic (growth) remains the most important one. It shows the desirability, the continuity or the power of the brands that we have in our portfolio. But sometimes you need inorganic (growth) for new geographies, for diversification, new categories," he added.