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The Estée Lauder Companies and Puig ended discussions over a potential business combination on Thursday, with the two companies' stocks moving sharply in opposite directions.
Estée Lauder stock rose as much as 11% in premarket trading following the announcement. Puig stock fell more than 14% in Madrid — its steepest decline since the Spanish beauty group listed in 2024, according to Bloomberg.
The companies had confirmed in March that they were exploring a combination. Combined, the two would have had a market value of nearly $39 billion and annual sales of around $20 billion in 2025, according to Bloomberg. Neither company provided a reason for ending the talks in their public statements.
The proposed deal fell apart in part over demands by makeup artist Charlotte Tilbury regarding her compensation in the transaction, according to Bloomberg, citing unnamed sources. Among the complications was a change-of-control provision that Tilbury retained when she sold her namesake brand to Puig in 2020 while keeping a minority stake, Bloomberg reported, citing people familiar with the matter. A separate source cautioned Bloomberg that Tilbury's demands were far from the only factor that ultimately sank the deal.
