An Estee Lauder Cos. concession in the beauty department inside the John Lewis Partnership Plc department store on Oxford Street in London, UK, on Friday, Feb. 20, 2026.
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Estée Lauder’s shares were up almost 10% in premarket trading after talks over a potential merger with Spanish beauty group Puig were “terminated.”
The British beauty giant, which owns the Clinique and Tom Ford Beauty brands and is listed on the New York Stock Exchange, said in March that it was in discussions with Puig, the owner of Charlotte Tilbury and Jean Paul Gaultier, to combine the companies.
But Estée Lauder said in a statement on Thursday that both parties had terminated discussions and that it remained focused on its “Beauty Reimagined” turnaround strategy, which involves focusing on premium launches and streamlining the company’s supply chain.
“We are grateful for the conversations we have had with Puig,” Estée’s president and CEO, Stéphane de La Faverie, said in the statement. “We are reiterating our confidence in the power of our incredible brands, our talented teams, and our strength as a standalone company.
“We are more optimistic than ever about our ability to unlock significant long-term value through Beauty Reimagined, and we remain focused on accelerating that progress.”
Estée Lauder’s shares were last seen up 9.6% in premarket trading. Puig had plunged nearly 14% by 11:55 a.m. CEST (5:55 a.m. E.T.). Estée Lauder has a market cap of $28 billion. Puig’s is 2.7 billion euros (roughly $3 billion).
Puig did not immediately respond to CNBC’s request for comment.
Estée said in February that it expects a $100 million hit to its full-year profitability due to tariffs. Its “Beauty Reimagined” strategy, which is intended to boost growth, is expected to cost between $1.2 billion and $1.6 billion.
The company laid out plans to slash 3,000 jobs as part of a restructuring and is looking to cut up to 10,000 positions, which, it said, could save $1.2 billion.
Analysts were concerned about the merger due to a mismatch and potential power struggle between the brands, with investors cheering the termination of the deal as a near “lucky escape,” AJ Bell’s head of markets, Dan Coatsworth, said in a note on Friday.
“Handbags at dawn appear to have kiboshed a near-$40 billion fashion and beauty merger deal,” Coatsworth said.
“Estée Lauder and Puig weren’t the most obvious companies to park together. One is focused on skincare, makeup, and haircare, while the other specialises in designer clothing. They meet in the middle on fragrances and perfumes.
“Putting everything under one roof felt a bit like a jumble sale rather than a match made in heaven.”
He added: “A decision has been made to go it alone, meaning Estée Lauder needs a plan B to drive its recovery efforts.”
