Estée Lauder and Spain’s Puig have backed out of a multibillion-dollar deal that would have created one of the biggest beauty companies in the world.
The two companies had confirmed in March that they were discussing a possible business combination, without revealing terms. This Thursday (21), each company released statements stating that the conversations had ended, without detailing the reason.
Investors reacted well to the news. Estée Lauder shares rose 16% in the aftermarket. The stock had been falling since the company admitted it was in negotiations to buy Puig.
Study abroad
Upgrade your career!
Wall Street analysts were already showing skepticism towards the operation, questioning Estée Lauder’s ability to integrate new brands amid a restructuring process that has already led to the cutting of thousands of jobs.
© 2026 Bloomberg L.P.
