Estée Lauder and Puig in Merger Talks

The Estée Lauder Companies Inc., a New York-based cosmetics giant, and Puig, a Spanish beauty and fashion conglomerate, announced on Monday that they are in discussions regarding a potential merger, a move that could combine two major players in the global beauty industry.

The companies emphasized in separate statements that no final decision has been made and no agreement has been reached. "Unless and until an agreement is signed between the companies, there can be no assurances regarding the deal or its terms," Estée Lauder said. Puig echoed this, adding that talks are preliminary. The announcement, made after markets closed, led to immediate investor reactions: Estée Lauder's shares fell about 8 percent to close at $79.28, while Puig's stock rose between 3 and 11 percent, reflecting differing perceptions of the risks and opportunities.

Together, the firms generated approximately $20 billion in sales in fiscal 2025. Estée Lauder reported revenue of $14.3 billion, down 3 percent from the prior year, amid challenges including sluggish demand in China, travel retail disruptions, and tariff impacts expected to reduce full-year profitability by $100 million. Puig, by contrast, saw...