Estée Lauder and Spanish beauty group Puig end discussions about a potential merger, according to multiple outlets. The talks were disclosed in March and, after negotiations, the companies terminate the process in the late stages of talks. Estée Lauder’s shares react positively to the termination, with reports noting a sizable rise in pre-market and post-market trading as investors view the end of the proposed deal as reducing potential disruption to the company’s existing turnaround efforts.
Retail-focused coverage describes that analysts were not broadly supportive when the merger was first revealed, citing concerns that a tie-up could interfere with Estée Lauder’s turnaround plan. Additional reporting says Estée Lauder’s chief executive Stéphane de La Faverie characterizes the collapse as resulting from pricing disagreements, with the proposed terms described as not being “right.”
One outlet also notes that while the contemplated transaction would have created a large premium beauty business and combined major brands, the companies ultimately do not proceed. With the merger talks ended, Estée Lauder signals greater flexibility to pursue smaller acquisitions while continuing its turnaround strategy.
