Estee Lauder and Puig End Talks over Possible Merger
The companies ended talks after failing to agree on terms, and Estée Lauder shares rose 11.57% in after-hours trading, analysts said.
- On Thursday, The Estee Lauder Companies and Puig terminated merger discussions aimed at forming a $40 billion luxury beauty group, ending negotiations that would have combined brands including Tom Ford, Carolina Herrera, Rabanne, Jean Paul Gaultier and Clinique.
- Industry consolidation pressures mounted after France's L'Oreal agreed to a $4.7 billion acquisition of Kering's beauty arm, prompting the companies to announce merger discussions in March, though Estee Lauder's turnaround challenges and Puig's slower first-quarter growth complicated the combination.
- Proposed revenue of approximately €17.5 billion would have positioned the combined entity to compete with L'Oreal's €44 billion in 2025 sales. Estee Lauder stock surged 11.57% to $88.04 in after-hours trading Thursday, according to Benzinga Pro.
- CEO Stéphane de La Faverie stated the company remains focused on accelerating its Beauty Reimagined turnaround strategy and One ELC operating model, saying "The momentum we are seeing across our business reinforces the strength of the path ahead."
- Management will continue evaluating portfolio acquisitions and divestitures while pursuing sustainable sales growth and double-digit adjusted operating margins, leveraging prestige brands Bobbi Brown, La Mer, Le Labo, Jo Malone and Kilian Paris for long-term value creation.
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61 Articles
How leaks, demands and a phone call derailed Estée Lauder’s deal to create a $40B luxe giant
US cosmetics maker Estée Lauder and Spanish perfume group Puig had been finalizing the details of a deal when talks fell apart late on Thursday, preventing a merger that would have created a $40 billion luxury beauty giant.
Puig plummets 14.7% after announcing the breakdown of the talks due to a financial disagreement linked to the Charlotte Tilbury brand.
Associated Press News
A deal that could have put Clinique, Charlotte Tilbury and Jean Paul Gaultier under one roof is off
Estee Lauder and perfume maker Puig have ended merger talks that would have potentially put brands like MAC, Clinique, Charlotte Tilbury and Jean Paul Gaultier under one roof.
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Puig Shares Tumble as Estée Lauder Gains After Companies Abandon $40 Billion Merger Discussions
Shares of Puig plunged on Friday while Estée Lauder surged in U.S. premarket trading after the two beauty giants announced they had ended merger negotiations ... The post Puig Shares Tumble as Estée Lauder Gains After Companies Abandon $40 Billion Merger Discussions first appeared on [your]NEWS.
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