An Estee Lauder Cos. concession within the magnificence division contained in the John Lewis Partnership Plc division retailer on Oxford Road in London, UK, on Friday, Feb. 20, 2026.
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Estée Lauder’s shares surged after talks over a possible merger with Spanish magnificence group Puig had been “terminated.”
The British magnificence big, which owns the Clinique and Tom Ford Magnificence manufacturers and is listed on the New York Inventory Change, mentioned in March that it was in discussions with Puig, the proprietor of Charlotte Tilbury and Jean Paul Gaultier, to mix the businesses.
However Estée Lauder mentioned in a assertion on Thursday that each events had terminated discussions and that it remained centered on its “Magnificence Reimagined” turnaround technique, which entails specializing in premium launches and streamlining the corporate’s provide chain.
“We’re grateful for the conversations now we have had with Puig,” Estée’s president and CEO, Stéphane de La Faverie, mentioned within the assertion. “We’re reiterating our confidence within the energy of our unbelievable manufacturers, our proficient groups, and our power as a standalone firm.
“We’re extra optimistic than ever about our capability to unlock vital long-term worth by way of Magnificence Reimagined, and we stay centered on accelerating that progress.”
Estée Lauder’s shares had been up 11.2% shortly after the opening bell. Puig plunged practically 14% by 3:46 p.m. CEST (9:46 a.m. E.T.). Estée Lauder has a market cap of $28 billion. Puig’s is 2.7 billion euros (roughly $3 billion).
Estée Lauder.
Puig didn’t instantly reply to CNBC’s request for remark.
Estée mentioned in February that it expects a $100 million hit to its full-year profitability resulting from tariffs. Its “Magnificence Reimagined” technique, which is meant to spice up progress, is predicted to price between $1.2 billion and $1.6 billion.
The corporate laid out plans to slash 3,000 jobs as a part of a restructuring and is trying to reduce as much as 10,000 positions, which, it mentioned, might save $1.2 billion.
Analysts had been involved concerning the merger resulting from a mismatch and potential energy battle between the manufacturers, with traders cheering the termination of the deal as a close to “fortunate escape,” AJ Bell’s head of markets, Dan Coatsworth, mentioned in a be aware on Friday.
“Purses at daybreak seem to have kiboshed a near-$40 billion trend and sweetness merger deal,” Coatsworth mentioned.
“Estée Lauder and Puig weren’t the obvious firms to park collectively. One is targeted on skincare, make-up, and haircare, whereas the opposite specialises in designer clothes. They meet within the center on fragrances and perfumes.
“Placing every thing below one roof felt a bit like a jumble sale relatively than a match made in heaven.”
He added: “A choice has been made to go it alone, that means Estée Lauder wants a plan B to drive its restoration efforts.”
