Puig and Estée Lauder in Talks for Merger
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy EL?
The families behind Puig and Estee Lauder are set to meet in New York this week to negotiate the terms of a potential combination of their beauty businesses with the goal of announcing an agreement in the coming weeks, Pepe Bravo, Jose Orihuel and Roberto Casado of Spanish newspaper Expansion reported, citing market sources. Key points under discussion reportedly include the governance structure of the combined company, expected to be initially listed in the U.S., along with the shareholder agreement and the exchange ratio. The transaction would likely be structured as a takeover bid by Puig for Estee Lauder, with consideration consisting of a mix of cash and shares.
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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: 69.170
Low
70.00
Averages
106.76
High
130.00
Current: 69.170
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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- Voting Rights Distribution: The Puig family holds 93% of the voting rights in their company, while the Lauder family controls 82%, which will significantly influence the governance structure of the merged entity.
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New Target Price: The new target price is set at $75, down from the previous price of $107.
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