Estée Lauder in Merger Talks with Puig – Stock Impact & Details

Estée Lauder Companies confirmed Monday it is in discussions with Puig, the Spanish beauty group that owns brands including Charlotte Tilbury, Jean Paul Gaultier and Rabanne, regarding a potential merger. The announcement followed a report in the Financial Times and sent shockwaves through the beauty industry.

“No final decision has been made, and no agreement has been reached,” Estée Lauder stated in a press release. The company cautioned that unless and until a definitive agreement is signed, there are no assurances the deal will be completed.

News of the potential combination triggered a significant market reaction. Shares of Estée Lauder fell nearly 8% in trading Monday, while Puig’s stock rose approximately 3%, according to reports. The proposed merger would combine two major players in the global beauty market, potentially reshaping the competitive landscape.

The discussions come as Estée Lauder navigates a period of challenges. The company has faced headwinds from tariffs and is currently implementing a “Beauty Reimagined” turnaround plan aimed at revitalizing its business. In its most recent quarterly earnings report, Estée Lauder projected a $100 million impact to its full-year profitability due to tariff-related issues. The company’s stock has declined roughly 25% this year.

Puig, in contrast, has experienced substantial growth, particularly in the fragrance sector. The Barcelona-based group completed an initial public offering in 2024, achieving a valuation of approximately €13–14 billion following record sales of €4.3 billion in 2023. Puig’s success has been attributed, in part, to its diversified geographical presence and a comparatively lower reliance on the Chinese market than competitors like Estée Lauder and L’Oréal, as demand in China has softened.

Estée Lauder signaled a move to strengthen its portfolio with the acquisition of Deciem on March 5, 2026, but a combination with Puig would represent a far more substantial strategic move. The potential deal reflects a broader trend of consolidation within the beauty industry, as companies seek opportunities for growth and navigate shifting market dynamics.

The Estée Lauder Companies Inc. Confirmed it is in discussions regarding a potential business combination with Puig, but provided no further details regarding the potential financial terms of the deal.