Estée Lauder and Puig End $40 bn Merger Talks

On 21 May 2026 Estée Lauder Companies and Spanish perfumer Puig announced they terminated merger talks for a $40 billion luxury-beauty group. In early trading Estée Lauder shares rose 10-13 % while Puig fell 13-15 %, sending Puig to the bottom of Europe’s STOXX 600 index.

CNBC

The March 2026 talks sought to merge Estée Lauder’s brands (Clinique, Tom Ford Beauty, MAC) with Puig’s (Carolina Herrera, Jean Paul Gaultier, Byredo, Charlotte Tilbury) to challenge L’Oréal and tap growth in China and travel-retail.

WWD

Talks began on 23 Mar 2026, ended on 21 May 2026, and formal statements were issued on 22 May 2026.

Reuters

The deal would have combined Estée Lauder’s $28 bn market cap with Puig’s €2.7 bn (€5.04 bn net-sales) business. The main obstacle was Charlotte Tilbury’s 21.5 % minority stake, which includes a change-of-control clause that could have forced Puig to buy her share for €850-€986 million—an amount Estée Lauder would not assume.

The Guardian

Estée Lauder reaffirmed its “Beauty Reimagined” plan, adding product launches, luxury-price-tier expansion and a restructuring that may cut up to 10 000 jobs (?17 % of staff) and raised its fiscal 2027 profit forecast. Puig said its capital structure remains flexible for selective M&A and will refocus on core fragrance and fashion brands amid slower Q1 sales and Middle-East pressure.

The Globe and Mail (Toronto)

Estée Lauder CEO Stéphane de La Faverie thanked Puig, expressed confidence in the brand portfolio and pledged focus on the standalone “Beauty Reimagined” plan. Puig CEO José Manuel Albesa said the conversations were meaningful, the strategic roadmap remains unchanged and the company stays committed to profitable growth.

WWD

Analysts warned a merger could have stretched Estée Lauder’s balance sheet, integration risk and complicated governance given families’ desire for control. RBC Capital Markets welcomed the termination; Bank of America called the news a “positive catalyst” for Estée Lauder’s stock. Jefferies noted Tilbury’s renegotiation raised valuation uncertainty.

Estée Lauder (EL) Stock Surges 10% After Walking Away From Puig Merger

Sources differ on share moves (Estée Lauder up 10-13 %; Puig down 13-15 %). Charlotte Tilbury declined comment, leaving her view on the stake renegotiation. Valuation estimates range from “around $40 bn” to “approximately $40 bn.”

Estée Lauder (EL) Stock Surges 10% After Walking Away From Puig Merger

• “We are grateful for the conversations we have had with Puig.” — Stéphane de La Faverie, President and CEO, Estée Lauder Companies

Estée Lauder ends merger talks with Puig as it continues turnaround

• “We appreciate the meaningful conversations that have taken place with the Estée Lauder Companies.” — José Manuel Albesa, CEO, Puig

Estée Lauder Companies and Puig ‘terminate discussions’ over merger

• “We are relieved to hear that the talks have been terminated,” — Nik Modi, Analyst, RBC Capital Markets

Estée Lauder (EL) Stock Surges 10% After Walking Away From Puig Merger

• “Recent reports that Charlotte Tilbury was seeking to renegotiate terms tied to her remaining stake had begun to erode that conviction,” — Charles Brennan, Analyst, Jefferies

Estée Lauder (EL) Stock Surges 10% After Walking Away From Puig Merger

Puig will set a new date for its postponed Capital Markets Day and pursue selective M&A. Estée Lauder will continue “Beauty Reimagined,” with further job cuts, portfolio reviews and potential acquisitions beyond the aborted merger.

CNBC