The negotiations between Puig and Estee Lauder to create a cosmetics and perfume giant have broken down. In a relevant fact sent to the CNMV, the Spanish company has reported that the agreement has been broken. “On March 23, 2026 (under registration number 3147), Puig confirmed that it was in discussions with The Estée Lauder Companies Inc. in relation to a possible combination of the businesses of both groups. Puig announces today that these conversations have ended and that the companies have not reached an agreement to carry out a potential merger of their respective businesses. Puig remains focused on the execution of its strategy and on continuing to drive profitable growth across its portfolio of brands. This decision does not “alters Puig’s strategic roadmap, which remains focused on premium beauty, brand building and long-term value generation.”
In statements included in the communication addressed to the CNMV, José Manuel Albesa, CEO of Puig, stated that they value “the enriching conversations that have been held with The Estée Lauder Companies.” The executive asserts that this decision does not modify its strategic roadmap. “We continue to build on our strengths in premium beauty, with management focused on brands, creativity, agility and disciplined growth. “We have demonstrated a differential culture that has allowed us to meet all our commitments since our IPO, achieving growth objectives, improving margin and strengthening our balance sheet,” he added. Albesa says that the “solid capital structure” gives Puig flexibility to undertake “a wide range of strategic alternatives” aligned with its long-term priorities.
The sum of both companies would have yielded a company with a stock market valuation close to 40,000 million dollars, adding the 30,000 million capitalization of the American company and the 9,000 million of the Spanish company, and aggregate sales of more than 17,000 million euros (12,336 for Estee Lauder and 5,042 for Puig). Despite its larger size, the economic situation of the American company was far from being the most ideal, something that could have influenced the failure of the negotiations. In its last fiscal year, it recorded a net loss of 1,133 million dollars and its income fell 8.2% annually. And deterioration that had been coming for a long time, since at the end of 2023 it began a two-year restructuring program to rebuild eroded margins after the crisis caused by the pandemic, with a plan to lay off 7,000 employees. In a communication sent to the United States Securities and Exchange Commission (SEC) at the beginning of April, Estée Lauder detailed that the accumulated bill until March 31 had grown to 1,367 million dollars (1,200 million euros). In that letter he also considerably raised the number of layoffs linked to it. The American cosmetic group expanded the adjustment between 9,000 and 10,000 net layoffs compared to the previous estimate that spoke of a range of between 5,800 and 7,000. These 10,000 layoffs were equivalent to about 15% of the workforce, and represented an increase of 43% between the maximum figures for both ranges, despite the fact that the company had raised its year-end forecasts, after achieving a good third quarter at an operational level.
The downward line of Estée Lauder in recent years contrasts with the drive of the company chaired by Marc Puig. In five years it doubled sales due to the intense activity deployed to gain size. During that period it acquired companies such as the German dermoaesthetics firm Dr. Barbara Sturm; the Swedish company Byredo, in an operation that reached 1,000 million euros; and before that he did the same with Charlotte Tilbury, a British company for which he also paid close to 900 million. As revealed in the IPO prospectus published two years ago, Puig has spent 2.5 billion in acquisitions since 2011. Of that amount, 840.2 million corresponded only to purchases made in 2022.
