A marriage that could revolutionize the beauty sectorThe American giant Estée Lauder Companies announced Monday evening, after the Wall Street close, that it is in talks with the Catalan cosmetics group Puig in view of a potential merger between the two companies. This operation also represents a response to the €4 billion mega-agreement signed last October by L'Oréal and Kering beauté.
Puig and Estée Lauder Announcement
Through a statement, Puig and Estée Lauder confirmed that they are “in talks regarding a potential merger, in which the two companies could combine their activities”. The two groups have specified that “no final decision has been made nor has any agreement been reached. Unless and until an agreement is reached, no assurances can be given regarding the transaction or its terms.”
Stock market reaction
Before the confirmation the news had been anticipated by Financial Times, impacting the performance of stocks on the stock market. On Wall Street yesterday, the US cosmetics giant lost almost 8%, only to then return to parity in the after hours (+0,3% in the pre-market. On the contrary, yesterday Puig's actions rose by more than 3% and today on the Bolsa de Madrid they earn 18%.
Estée Lauder has a capitalization market value of 30 billion dollars, while the Spanish group's market value is around 10 billion dollars. In 2025, Puig reported revenues for €5 billion, an increase of 5,3% (+7,8% on a like-for-like basis), while in the financial year ending last June, Estée Lauder achieved revenues of $14,3 billion, a decrease of approximately 8% (7,7 billion in the first six months of the 2025-26 financial year). The American group is in fact going through a difficult period due to the ongoing difficulties arising from customs duties and corporate restructuring, as part of the "Beauty Reimagined" relaunch plan aimed at revitalizing the business.
Puig owns major beauty brands including Carolina Herrera, Jean Paul Gaultier and Rabanne and Charlotte Tilbury. In addition to the eponymous brand, Estée Lauder's portfolio also includes Tom Ford, Balmain beauty, Jo Malone London, La Mer, Le Labo, Aveda, Clinique and Aerin beauty.
(Last update at 12.38 on 24 March).
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