Puig and Estée Lauder have ended merger talks

It appears there will be no merger or acquisition between the Spanish fashion house Puig (known for Dries Van Noten and Jean Paul Gaultier) and the American cosmetics group Estée Lauder after all. The companies have halted talks and will continue on their separate paths.

Sticking points

In March of this year, it was reported that the American cosmetics giant Estée Lauder was in advanced talks regarding a merger with the Spanish company Puig, owner of brands such as Nina Ricci and Paco Rabanne. A merger could have resulted in a luxury conglomerate with annual revenue of approximately $20 billion (€18 billion). On Thursday evening, both companies announced simultaneously that those negotiations had not resulted in an agreement. One of the sticking points in the negotiations was Charlotte Tilbury’s list of demands, insiders told Bloomberg. Following the news, Puig’s stock price fell, while Estée Lauder’s stock price rose slightly.

In a press release, Puig described the process as enriching. The company underscored the health of its business model and remains focused on creating value for shareholders. The group does not rule out new M&A opportunities and remains committed to its strategic priorities.

The statement from The Estée Lauder Companies follows the same line. The company continues to execute its strategy under the “Beauty Reimagined” program and does not rule out divestitures. “We believe we are in a unique position to drive sustainable long-term growth globally,” said Stéphane de La Faverie, Chairman and CEO.