Trending Now - Estée Lauder Explores Merger With Puig to Reshape Cosmetics Sector
WHO:
Estée Lauder Companies Inc. and Puig are in talks regarding a potential business combination.
José Manuel Albesa is the new CEO of Puig, succeeding Marc Puig, who remains executive chairman.
José Manuel Albesa has taken over as CEO of Puig from Marc Puig, who has become executive chairman.
Charlotte Tilbury is a brand under Puig, which ranks first in prestige makeup in the U.K. and third in the U.S.
Estée Lauder Companies Inc.
Puig
Angelina Rascouet (reporter)
José Manuel Albesa (CEO of Puig)
Marc Puig (former CEO of Puig, now executive chairman)
William P. Lauder (former executive chairman of Estée Lauder)
Stéphane de La Faverie (CEO of Estée Lauder)
WHAT:
The potential merger could create a combined company valued at approximately $40 billion.
Puig's shares have fallen nearly 30% since its initial public offering in 2024.
Puig's fourth-quarter 2025 sales grew 6.2 percent in reported terms and 9.8 percent on a like-for-like basis, driven by its makeup business, particularly Charlotte Tilbury.
Makeup represented 17 percent of Puig's group sales in 2025.
Estée Lauder is in talks to buy Puig.
The potential merger would create a cosmetics giant with approximately $20 billion in annual sales.
Estée Lauder's market capitalization is $28.7 billion.
Estée Lauder's sales last year were $14.7 billion, a decline of 3 percent.
Puig recorded net sales of 5.04 billion euros last year.
Shares of Estée Lauder fell 7.7 percent to $79.29 on March 23rd, 2026.
Puig's fragrance and fashion division generated 3.65 billion euros in 2025, accounting for 72 percent of its net revenues.
Puig's makeup business grew 6.2 percent in the fourth quarter of 2025.
WHERE:
New York (location of Estée Lauder)
Spain (location of Puig)
WHEN:
The confirmation of the merger talks occurred on March 23rd, 2026.
Puig went public in Spain in May 2024, valued at 13.9 billion euros.
Talks confirmed on March 23rd, 2026.
Puig went public in Spain in May 2024.
Puig's IPO was the largest in Spain since 2015.
Estée Lauder has been publicly quoted since 1995.
WHY:
Analysts at Citigroup expressed concerns about the complexity and execution risk of the merger during Estée Lauder's business turnaround.
A merger would help Puig expand its reach in the Americas, which represented 35 percent of its net sales in 2025.
The merger could enhance Puig's skin care activity, which accounted for 11 percent of total sales.
The merger could help Estée Lauder expand its reach in the Americas, where Puig's net sales were 35 percent last year.
Estée Lauder has struggled due to over-reliance on China and travel retail.
HOW:
Estée Lauder's share price has decreased 80% from its all-time peak in 2021.
Estée Lauder's shares are down 15 percent year-to-date as of March 23rd, 2026.
Estée Lauder and Puig are discussing a potential business combination.
No final decision or agreement has been reached regarding the merger.
(UPDATED March 24, 2026 17:53 UTC)
Estée Lauder Companies Inc. and Puig are currently in discussions about a potential merger that could create a combined company valued at around $40 billion, with confirmation of these talks coming just yesterday. José Manuel Albesa has taken over as CEO of Puig, succeeding Marc Puig, who will remain as executive chairman, while Puig's shares have dropped nearly 30% since their initial public offering in 2024. Analysts at Citigroup have raised concerns about the complexities and risks involved in this merger, especially as Estée Lauder's share price has plummeted 80% from its all-time high in 2021.
--
(UPDATED March 24, 2026 13:45 UTC)
José Manuel Albesa has officially taken over as CEO of Puig, succeeding Marc Puig, who now serves as executive chairman. Puig recently reported a 6.2 percent growth in fourth-quarter 2025 sales, largely driven by its makeup business, particularly the Charlotte Tilbury brand, which ranks first in prestige makeup in the U.K. and third in the U.S. As Puig looks to expand its reach in the Americas, where it generated 35 percent of its net sales last year, Estée Lauder's shares have seen a decline of 15 percent year-to-date as of last Sunday.
--
(UPDATED March 24, 2026 11:30 UTC)
Estée Lauder is in talks to acquire Puig, a move that could create a cosmetics giant with around $20 billion in annual sales. The discussions were confirmed last Monday, although no final decision has been made yet. Estée Lauder, which has faced challenges due to its reliance on China and travel retail, saw its shares drop 7.7 percent to $79.29 yesterday, while Puig's fragrance and fashion division accounted for a significant portion of its net revenues last year.