What: Shares of Coty (NYSE:COTY) were up 19.5% as of 11 a.m. Tuesday following reports the cosmetics and personal care products specialist has won an auction to acquire Procter & Gamble's (NYSE:PG) beauty businesses.

So what: According to Reuters, sources familiar with the matter say Coty outbid competitors including Henkel & Co KGaA AG to purchase Procter & Gamble's hair care, fragrance, and cosmetics businesses. 

Now what: The value of the three purchases could approach $12 billion, according to Reuters, which would be greater than Coty's existing market capitalization of around $9.5 billion as of this writing. But Coty, in particular, should be able to take advantage of significant synergies and cost savings given its existing portfolio of brands, which notably includes fragrances produced for the likes of Calvin Klein and Marc Jacobs. That said, Reuters' sources also say the deal hasn't been finalized yet. Given its sheer size and the complicated nature of integrating such large acquisitions, I wouldn't blame Coty investors who wanted to take at least some of today's quick profits off the table.