Estée Lauder Jumps 11.2% After Ending Puig Merger Talks
Updated
Updated · CNBC · May 22
Estée Lauder Jumps 11.2% After Ending Puig Merger Talks
10 articles · Updated · CNBC · May 22
Estée Lauder rose 11.2% after saying it and Puig had terminated merger discussions first disclosed in March, while Puig shares fell nearly 14% in European trading.
The company said it will stay focused on its standalone "Beauty Reimagined" turnaround, which centers on premium product launches and supply-chain streamlining.
Analysts had questioned the tie-up because of brand overlap and strategic mismatch, with AJ Bell calling the collapse a near "lucky escape" for investors.
Estée Lauder, valued at about $28 billion, is already managing tariff pressure and restructuring costs: it warned in February of a $100 million profit hit and has outlined up to 10,000 job cuts.
Was a single brand's contract clause the real reason a $31 billion beauty merger collapsed?
After eight quarters of decline, can Estée Lauder's new strategy truly revive its long-term growth?