Puig and The Estée Lauder Companies disclosed after Monday's market close that they are discussing a possible business combination, with no agreement reached. Puig notified Spain's CNMV on March 23, 2026. The deal could create a $40 billion beauty group with $20 billion in combined sales, prompting Estée Lauder shares to drop 7.7% while Puig's rose 11%.
Spanish beauty conglomerate Puig notified Spain's National Securities Market Commission (CNMV) on March 23, 2026, that it is holding talks with New York-based The Estée Lauder Companies (ELC) on a potential merger. 'Puig confirms it is holding conversations on a possible business combination with The Estée Lauder, which would imply a potential merger of both businesses. No definitive decision has been taken nor any agreement reached,' the filing stated. Unless a firm agreement is secured, no assurances can be given on the deal or terms.
Financial Times and Wall Street Journal reports indicate the combined entity could be valued at $40 billion, with over €15 billion in sales via a cash-and-ELC shares structure. Fiscal 2025 projections show combined sales of $20 billion: ELC at $14.3 billion (down 8%) and Puig at €5 billion (up 7.8%). Markets reacted sharply after hours, with ELC shares falling 7.7% and Puig's rising 11%.
Puig, listed in 2024 at €24.50 per share, owns brands including Carolina Herrera, Jean Paul Gaultier, Rabanne, Dries Van Noten, Charlotte Tilbury, Dr. Barbara Sturm, and Byredo. ELC's portfolio features La Mer, MAC Cosmetics, Bobbi Brown, The Ordinary, Le Labo, and Tom Ford beauty. Both companies excel in fragrances and skincare, with growth potential in markets like India.
Recent leadership changes include Puig appointing José Manuel Albesa as CEO on March 17 (replacing Marc Puig, now executive chairman) and Miquel Àngel Serra as CFO. At ELC, Stéphane de La Faverie took over as CEO in January 2025 to lead a turnaround amid challenges in China and travel retail, including 2025 losses and restructuring. ELC reported 4% organic net sales growth to $4.16 billion in Q2 fiscal 2026 (ended December 31, 2025), with de La Faverie noting 'excellent second-quarter results' and progress on 'Beauty Reimagined.'
Analysts see merger potential to challenge L'Oréal, Unilever, and Shiseido. Ilya Seglin of Cascadia Capital cited cultural alignment from family ownership, while Neil Saunders of GlobalData said it provides ELC a 'growth story' despite ongoing revitalization needs.
