Beauty giant Estee Lauder (EL) and Spanish fashion conglomerate Puig (PUGBY) have ended talks about a potential business merger. Following the news, EL stock jumped over 10% in the extended trading session.
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The two companies had been in early talks in recent weeks, exploring a possible deal that would join Estee Lauder’s global beauty brands with Puig’s fast-growing fragrance and fashion labels. However, they could not reach a deal, and the talks have now officially ended. No financial terms were disclosed, and neither company provided details on why the talks were halted.
A Missed Opportunity
The talks ended after Estee Lauder said earlier this year that it was looking at new strategic options as part of a long, multi‑year turnaround. The company has been trying to steady its business after weak demand in China, inventory issues, and ongoing restructuring.
Meanwhile, Puig has been a key player in the global beauty market, posting double-digit sales growth and gaining share in high‑end fragrances.
A combination of the two companies would have created a global powerhouse across skincare, makeup, and luxury fragrance.
Is EL a Good Stock to Buy?
Turning to Wall Street, EL stock has a Moderate Buy consensus rating based on eight Buys and 11 Holds assigned in the last three months. At $96.68, the average Estee Lauder stock price target implies a 22.52% upside potential.
