The Tamesis
After confirming that merger discussions began on March 23, Puig and The Estée Lauder Companies announced today in separate statements that the parties have not yet reached an agreement.
Jose Manuel Albesa, CEO of Puig, said: “We appreciate the meaningful dialogue we have had with The Estée Lauder Companies. Puig has a strong track record of growth and outperforming the premium beauty market. We remain focused on executing our strategy to grow profitably and prioritize the interests of all our stakeholders.”
“We are deeply grateful for this conversation with Puig,” said Stéphane de La Faverie, president and CEO of The Estée Lauder Companies. “Today, we reaffirm our confidence in the power of our incredible brands, our talented team and our strength as an independent company. We are more optimistic than ever about our ability to unlock significant long-term value with Beauty Reimagined [the company’s turnaround strategy]we remain committed to accelerating this progress. “
The deal will create a beauty platform that generates about 17.5 billion euros in revenue, thereby strengthening its competitive position relative to L’Oréal, which has sales of about 44 billion euros in 2025.
Analysts highlighted the strong complementarities between the two companies, particularly in terms of geographic footprint and product portfolio. However, they expressed concerns about the timing of the deal, as Estée Lauder is currently in the process of turning a profit. “The Estée Lauder Companies remains fully focused on continuing to execute on its Beauty Reimagined strategy, which is well underway and delivering positive results,” reads today’s ELC press release.
De la Faverie noted that the company is “investing in the highest growth opportunities globally” [its] portfolio,” but added that it would “continue to evaluate and develop [its] investment portfolio to ensure [they] Have the right assets to drive the most compelling growth opportunities, including potential acquisitions and divestitures. “
“We will continue to take a highly selective, value-driven approach to acquisitions that further complement our portfolio. Today, we reaffirm our confidence in our caring brands and exceptional teams, as well as our strength as an independent company to create long-term value,” Albesa said.
