Body
Estee Lauder ended merger talks with Spanish fragrance and beauty company Puig that would have combined brands including Clinique and Jean Paul Gaultier under one corporate umbrella, according to the company. The decision kept those brands separate, ending a process that had been discussed publicly earlier this year.
Estée Lauder said its conversations with Puig had concluded after a period in which it had confirmed the discussions but said no deal was reached. In a prepared statement late Thursday, CEO Stéphane de la Faverie said, “We are grateful for the conversations we have had with Puig.” He added, “Today, we are reiterating our confidence in the power of our incredible brands, our talented teams, and our strength as a standalone company.”
The company first acknowledged the talks in March, when it also said that no agreement had been reached with Puig, a century-old Spanish company. The latest announcement came as the business moved to reset expectations around the possibility of bringing more of the beauty lineup together.
The deal discussions, however, had already influenced investor sentiment. Shares of Estée Lauder jumped more than 12% in early trading Friday after the news that the merger talks were over.
The company’s standalone focus comes as Estée Lauder has been in the midst of its own restructuring planning. In February 2025, Estée Lauder said it could cut as many as 7,000 jobs by fiscal 2026, more than 11% of its workforce, as part of a shift toward an operating model it described at the time as “leaner, faster, and more agile.”
Puig oversees makeup, skin care and fragrance brands including Nina Ricci, Jean Paul Gaultier and Dr. Barbara Sturm. Puig also includes Charlotte Tilbury in its portfolio and went public on the Madrid Stock Exchange in early 2024, the company has said.
With the talks now called off, brands that would have sat under a combined structure remain under their current owners. Estée Lauder is now positioned to pursue its planned operating-model changes without a merger involving Puig.