Estée Lauder, Puig end merger talks

Estée Lauder Companies and Spain’s Puig announced on May 21, 2026 that they have terminated talks over a possible business combination. The decision ends discussions that media reports had framed as potentially creating a premium luxury beauty group with an enterprise scale of roughly $40 billion.

Both companies disclosed the outcome in separate statements the same day. Neither side detailed specific reasons for ending the talks, but each emphasized a renewed focus on its existing strategic priorities as an independent business.

Estée Lauder president and chief executive Stéphane de La Faverie thanked Puig for the conversations and highlighted appreciation for both teams involved in the discussions. He reiterated confidence in the strength of Estée Lauder’s brands and employees.

De La Faverie said Estée Lauder will continue to execute its ongoing 'Beauty Reimagined' turnaround strategy as a standalone company. The company signaled that the end of talks does not alter its plan to improve performance through this program.

Puig chief executive Jose Manuel Albesa said the Spanish beauty group remains focused on executing its own strategy and delivering profitable growth. He stressed that Puig will pursue a highly selective, value-driven approach to mergers and acquisitions to complement its portfolio.

Financial-market coverage cited a positive initial response to the announcement for Estée Lauder. Reports said the company’s shares rose in extended trading following the disclosure that merger talks had ended.

According to these reports, Estée Lauder’s stock was roughly 10–12% higher in after-hours trading. The move came after investors had been monitoring media coverage of the potential deal and its implications for the company’s strategic direction.

The terminated discussions close off, for now, the prospect of combining Estée Lauder and Puig into a larger luxury beauty platform. Media reports had portrayed the potential combination as creating a premium player with about $40 billion in scale across fragrance, cosmetics and skincare.

Instead, both groups indicated they will continue to pursue their respective standalone strategies. Estée Lauder is prioritizing its internal turnaround, while Puig is signaling discipline toward future M&A, focusing on deals that fit its value-driven criteria and strategic objectives.

Both companies said they will concentrate on executing their existing plans after ending the merger talks. Each emphasized confidence in its current portfolio and long-term growth path without a business combination.