Estée Lauder in Negotiations to Merge with Puig

Estée Lauder is reportedly in discussions to merge with Puig, the Spanish cosmetics group that owns Charlotte Tilbury and Jean Paul Gaultier. The potential merger could create a company valued at around 40 billion dollars. This information was confirmed by representatives from Estée Lauder.

Estée Lauder, one of the largest cosmetics firms in the world, holds a diverse portfolio that includes renowned brands such as Clinique, MAC, La Mer, and Tom Ford Beauty. The company, which was founded in 1946, is publicly traded on the New York Stock Exchange.

Puig, established in 1914, is a family-owned fashion and beauty enterprise headquartered in Barcelona. The business recently went public in May 2024, listing on the Spanish stock exchanges, including the Madrid market. Both companies are currently exploring a potential business combination; however, no final agreement has been reached.

Following the announcement of the merger discussions, Estée Lauder’s stock fell sharply by 7.7 percent to 79.29 dollars. The beauty giant has faced significant challenges in recent months, including a sales downturn in China. Job cuts have been increased to 7,000 due to what the company described as external volatility affecting its operations.

Puig’s financial situation also appears strained, as its share price has descended more than a third since its initial public offering, currently standing at 15.57 euros. Analysts have expressed concerns regarding a global slowdown in the fragrance market, which has seen reduced growth following the significant surges experienced after the pandemic.

Both Estée Lauder and Puig will likely face scrutiny as this situation unfolds, and updates regarding the negotiations will be closely monitored by investors and industry observers.