Estée Lauder is in talks to merge with Puig amid ongoing turnaround plan

NoodlesOrTokens · 2026-03-27T00:46:01+00:00

Estée Lauder is in discussions with Puig for a potential merger, with no agreement yet reached. Following the news, Estée Lauder's shares fell 8%, while Puig's rose 3%. Estée Lauder faces challenges from tariffs and a restructuring plan, leading to significant stock declines this year.

NoodlesOrTokens

2026-03-27 00:46:01

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An Estée Lauder pop-up store is seen inside a Daimaru store on Nanjing Road in Shanghai, China, Aug. 6, 2021.

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Estée Lauder Companies said Monday that it is in talks with Spanish beauty group Puig to potentially merge the two companies.

“No final decision has been made, and no agreement has been reached,” Estée Lauder said in a statement.

Shares of the U.S. beauty company were down nearly 8% following the news, which was first reported by the Financial Times. Puig’s stock rose roughly 3%.

Puig owns major beauty brands including Charlotte Tilbury, Jean Paul Gaultier and Rabanne. The companies did not disclose any financial details of the potential deal.

Estée Lauder has been struggling amid ongoing headwinds from tariffs and its restructuring as it enacts its “Beauty Reimagined” turnaround plan to revitalize the business. In its second-quarter earnings report last month, the beauty retailer said it’s expecting a $100 million hit to its full-year profitability due to tariff impacts.

Estée Lauder’s stock has dropped roughly 25% this year.

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