Estée Lauder in talks to merge with Puig amid ongoing turnaround plan
An Estée Lauder pop-up store is seen inside a Daimaru store on Nanjing Road in Shanghai, China, on August 6, 2021.
Cost photo | Future Publishing | Getty Images
Estée Lauder Companies She said on Monday she was in talks with the Spanish beauty group Puig potentially merging the two companies.
“No final decisions have been made and no agreements have been reached,” Estée Lauder said in a statement. he said.
Following the news, which was first reported by the Financial Times, shares of the US beauty company lost approximately 8% of their value. Puig’s shares rose nearly 3%.
Puig owns major beauty brands such as Charlotte Tilbury, Jean Paul Gaultier and Rabanne. The companies did not disclose financial details of the potential deal.
Estée Lauder is struggling amid headwinds from tariffs and restructuring as it rolls out its “Reimagined Beauty” turnaround plan to revive business. In its second-quarter earnings report last month, the beauty retailer said it expected a $100 million hit to full-year profitability due to tariff impacts.
Shares of Estée Lauder are down nearly 25% this year.
