Update (June 2, 2026): Estée Lauder’s proposed merger with Puig collapsed because the two companies could not agree on valuation, according to CEO Stéphane de La Faverie, per media reports.
Speaking at a consumer conference in Paris, he said Estée Lauder would only pursue deals that deliver the right combination of growth, profitability and price, and that the Puig transaction ultimately failed because it did not meet those criteria.
Despite the setback, Estée Lauder remains open to future acquisitions that satisfy its financial requirements.
Reports indicate the talks were also complicated by leaks, disagreements among the companies’ controlling families and demands from stakeholders, including Charlotte Tilbury (see below).
Update (May 21, 2026): The Estée Lauder Companies Inc. (NYSE: EL) and Puig have terminated discussions regarding a potential business combination, bringing an end to exploratory merger talks first confirmed on March 23, 2026.
(If you believe the analysts, this cessation is good for Lauder and not so great for Puig.)
At that time, the two companies acknowledged they were in discussions but emphasized that no agreement had been reached and that there was no certainty a deal would materialize. With negotiations now concluded, both parties are returning to their standalone strategic priorities.
Just days ago, market sources cited by Expansion reported that Charlotte Tilbury wants to revisit contractual provisions linked to the remaining 21.5% stake she still holds in her brand, which Puig is expected to fully acquire between 2026 and 2031 through a series of buy-and-sell options tied to the brand’s financial performance.
For Estée Lauder, the decision reinforces its focus on its ongoing transformation agenda, “Beauty Reimagined,” which aims to streamline operations, accelerate innovation, and sharpen consumer execution under its “One ELC” operating model.
“We are grateful for the conversations we have had with Puig,” said Stéphane de La Faverie. “We are reiterating our confidence in the power of our brands and our ability to unlock long-term value through Beauty Reimagined.”
The company said it remains focused on portfolio optimization, disciplined capital allocation, and investment in higher-growth categories and geographies, alongside continued evaluation of potential acquisitions and divestitures.
Estée Lauder added that it is targeting sustained sales growth and long-term profitability improvement, with an emphasis on expanding operating margins over time.
Puig, meanwhile, exits the discussions with its standalone growth trajectory intact, as both companies signal confidence in their independent strategies following the collapse of merger negotiations.
Update (April 30, 2026): According to a Reuters report, The Estée Lauder Companies is considering a takeover bid for Puig’s class B shares at €18–19 per share, slightly above the company’s recent trading price. Negotiations are ongoing, with financial and governance issues still to be resolved, and both companies have declined to comment.
According to a separate Reuters report, growing geopolitical tensions in the Middle East are clouding the outlook for Puig and complicating takeover ambitions by Estée Lauder Companies. Puig reported its slowest growth since the pandemic and warned that the conflict is dampening demand—particularly in travel retail, a key revenue stream—raising concerns about near-term performance. While Estée Lauder sees Puig’s strong margins, cash flow and trend-driven brands as a way to strengthen its competitive position against L’Oréal, investors remain skeptical. Estée faces its own challenges, including high debt, restructuring efforts and weak sales momentum, which could limit its flexibility and amplify execution risks.
Update (April 21, 2026): Per Reuters, Estée Lauder Companies Inc. has reportedly enlisted JPMorgan Chase & Co. to arrange roughly €5 billion ($5.89 billion) in financing for a potential takeover bid of Spanish beauty group Puig Brands SA, according to Spanish newspaper Expansion cited by Reuters. Estée Lauder has not yet commented publicly on the reported financing plans.
Update (April 7, 2026): A new report from Reuters is detailing what an Estee Lauder-Puig merger might look like.
Noting that the companies' founding families are meeting for negotiations, the merged group would be listed in New York.
The deal, conducted via a "cash-and-share public takeover bid" by Lauder, would create a major premium beauty group.
The deal could be done within weeks.
Previously (March 24, 2026): The Estée Lauder Companies Inc. (ELC) and Puig have officially confirmed they are in discussions regarding a potential business combination. While no final agreement has been reached, the talks signal a seismic shift in the prestige beauty landscape, potentially forming a company valued at about $40 billion.
The immediate reaction: a boost to Puig's stock price; a drop in the ELC stock price amid concerns about execution of such a large combination; and general uncertainty among analysts.
ELC's official statement, released March 23, read: The Estée Lauder Companies Inc. (NYSE: EL) confirms that it is in discussions regarding a potential business combination with Puig, in which the two companies would potentially merge their businesses. No final decision has been made, and no agreement has been reached. Unless and until an agreement is signed between the companies, there can be no assurances regarding the deal or its terms.
Coinciding with these high-stakes negotiations, the board of directors of Puig recently announced an evolution in its governance by separating the roles of chairman and CEO. Jose Manuel Albesa, formerly deputy CEO and beauty and fashion president, was recently named CEO of Puig. Albesa, who joined the firm in 1998, has been central to the international expansion of Puig’s fragrance and fashion portfolio.
Marc Puig has transitioned to the role of executive chairman, focusing specifically on M&A strategy—a critical role as the company engages with ELC—while remaining the custodian of the family's culture and values.
Puig recently surpassed €5 billion in annual sales, delivering +7.8% like-for-like (LFL) growth. The company currently holds three of the top 10 global fragrance spots with Rabanne, Carolina Herrera and Jean Paul Gaultier.
Meanwhile, Estée Lauder is showing some signs of recovery under its "Beauty Reimagined" plan, reporting a 4% organic sales increase and a 43% rise in adjusted EPS in its most recent quarter. It is also considering some divestitures of underperforming brands.
A combination could create a strong force across all segments. Puig’s makeup division, led by Charlotte Tilbury, grew 13.7% in 2025. This would bolster ELC’s makeup category, which saw a more modest 1% growth recently.
EMEA remains Puig’s largest region, accounting for 55% of net revenue, while the Americas grew by 7.7% LFL in 2025, supported by Charlotte Tilbury's expansion on Amazon in the U.S. market. Puig saw explosive 21.7% LFL growth in APAC during 2025. This aligns with ELC’s recent double-digit retail growth in mainland China and market share gains in Japan.
Puig has moved its Capital Markets Day forward to April 14, 2026, in Madrid.
