Estée Lauder Terminates Merger Talks with Puig
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 22 2026
0mins
Source: CNBC
- Stock Price Surge: Estée Lauder's shares rose nearly 10% in premarket trading following the termination of merger talks with Spanish beauty group Puig, indicating increased market confidence in the company's independent strategy.
- Market Reaction: Puig's stock plummeted nearly 14% post-announcement, reflecting investor concerns over the merger's viability, suggesting a potential power struggle due to brand mismatches between the two companies.
- Strategic Focus: Estée Lauder reiterated its commitment to the 'Beauty Reimagined' strategy, planning to invest between $1.2 billion and $1.6 billion over the next few years to drive growth, while also anticipating a $100 million hit to full-year profitability due to tariffs.
- Layoff Plans: The company is set to cut 3,000 jobs and may reduce up to 10,000 positions to save $1.2 billion, a move aimed at optimizing its supply chain and enhancing operational efficiency to support long-term value creation goals.
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Analyst Views on EL
Wall Street analysts forecast EL stock price to rise
18 Analyst Rating
8 Buy
9 Hold
1 Sell
Moderate Buy
Current: 90.870
Low
70.00
Averages
106.76
High
130.00
Current: 90.870
Low
70.00
Averages
106.76
High
130.00
About EL
The Estee Lauder Companies Inc. is a manufacturer, marketer and seller of skin care, makeup, fragrance and hair care products. Its products are sold in over 150 countries and territories under a number of brand names, including Estee Lauder, Aramis, Clinique, Lab Series, Origins, M.A.C, Bobbi Brown Cosmetics, La Mer, Aveda, Jo Malone London, Bumble and bumble, Darphin Paris, TOM FORD, Smashbox, AERIN Beauty, Le Labo, Editions de Parfums Frederic Malle, GLAMGLOW, Kilian Paris, Too Faced, Dr.Jart+, and the DECIEM family of brands, including The Ordinary and NIOD, and BALMAIN Beauty. It is a licensee for fragrances, cosmetics and/or related products for AERIN, BALMAIN, and Dr. Andrew Weil. Its skin care products include moisturizers, serums, cleansers, toners, exfoliators, facial masks, body care, sun care products and others. Its makeup products include foundations, powders, concealers and setting sprays, lipsticks, lip liners and lip glosses, and mascaras, eyeshadows and eyeliners.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Brand Influence: Estée Lauder operates in approximately 150 countries, marketing a diverse range of premium skincare, makeup, and fragrance brands, including Estée Lauder, Clinique, and M·A·C, showcasing its strong presence in the luxury market.
- Strategic Market Positioning: By participating in key industry conferences, Estée Lauder reinforces its market position in the beauty and personal care sector, demonstrating a strategic focus on future growth opportunities.
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