Estée Lauder says it’s in talks to buy Puig Brands
The American beauty giant is in the midst of a turnaround plan that it says will cost up to $1.6 billion. Shares in each company went in opposite directions on the news.
Estée Lauder fell sharply in the last 30 minutes of trading yesterday, closing down nearly 8% after the company confirmed that it is in talks to purchase Puig Brands, a Spanish competitor with a market value of over $10 billion.
After rumors circulated about a potential tie-up, the American beauty giant said in a statement on Monday that it “is in discussions regarding a potential business combination with Puig, in which the two companies would potentially merge their businesses,” but didn’t confirm any potential terms of the deal or a price tag.
Puig, which owns brands like Rabanne and Charlotte Tilbury, reported €5 billion (~$5.8 billion) in sales in 2025, compared to about $14.6 billion for Estée Lauder. The Spanish-listed company saw its shares jump more than 12% on Tuesday morning.
Estée Lauder is down 25% for the year, with its most recent earnings report showing that restructuring costs and tariffs ate into its profits. The company is in the midst of turnaround plan that it says will cost up to $1.6 billion.
