Estée Lauder and Puig End Merger Talks and Pursue Separate Paths

Merger discussions between cosmetics giant Estée Lauder and Spanish fragrance and fashion group Puig have ended, leaving the two companies to pursue their strategies independently. The talks, which had been publicly confirmed in March, could have consolidated a portfolio of major beauty brands including MAC, Clinique, Charlotte Tilbury, and Jean Paul Gaultier under a single corporate entity.

Estée Lauder confirmed the end of negotiations in a statement late Thursday. The company's CEO, Stéphane de La Faverie, expressed gratitude for the conversations with Puig but reaffirmed confidence in Estée Lauder's future as a standalone company, citing the power of its brands and its talented teams. The New York-based firm had previously announced a significant restructuring plan in February, stating it could cut as many as 7,000 jobs by fiscal 2026 as part of an effort to transform its operating model to be leaner and more agile.

Puig, a century-old family-controlled company that went public on the Madrid Stock Exchange in early 2024, oversees a range of makeup, skincare, and fragrance brands such as Nina Ricci, Jean Paul Gaultier, and Dr. Barbara Sturm. The potential merger was seen by...