Estée Lauder, Puig End Merger Talks Over Potential €850 Million Charlotte Tilbury Payout
Updated
Updated · WWD · May 22
Estée Lauder, Puig End Merger Talks Over Potential €850 Million Charlotte Tilbury Payout
14 articles · Updated · WWD · May 22
Late Thursday, Estée Lauder and Puig said they terminated merger discussions after Charlotte Tilbury’s contract terms threatened to add several hundred million euros to the deal cost.
Tilbury—who still owns 21.5% of her brand—reportedly sought more favorable terms and could force an immediate sale of her stake before 2031, a move valued at about €850 million at Puig’s latest €4 billion valuation.
The talks had already grown more difficult after they leaked in the Spanish press in March, and sources said Estée Lauder was more willing to walk away as its financial position improved.
Estée Lauder reported 2% third-quarter organic sales growth, including a 10% fragrance gain, and its shares rose more than 10% after hours to build on a $78.91 close; Puig ended down 0.23% at €17.64 before steeper losses later.
The collapse leaves Estée Lauder pursuing its Beauty Reimagined strategy as a standalone company and could make it harder for Puig to find another partner for a tie-up.
Can Estée Lauder's internal strategy alone revive its fortunes, or is another blockbuster acquisition now inevitable?
With the merger abandoned, will newly-public Puig now become the hunter in the global beauty acquisition game?
Did a single brand's contract clause truly derail a $40B merger, or did two family empires simply refuse to yield?