After almost two months of intensive negotiations, there will be no merger, takeover or other form of integration between the Spanish fashion and beauty group Puig and the US company The Estée Lauder Companies. Both companies confirmed in separate announcements that discussions about a possible merger had ended. The negotiations officially began on March 23rd and have now ended without an agreement.
The messages, which are almost identical in content and structure, were published simultaneously from Barcelona and New York on Thursday, May 21st at 10:05 p.m. CEST. In New York, this corresponded to 4:05 p.m. local time and thus the close of trading on the stock exchange. Puig, parent company of brands such as Carolina Herrera, Jean Paul Gaultier and Paco Rabanne, confirmed the collapse of merger talks with The Estée Lauder Companies. At the same time, the company pointed out that when the talks were announced on March 23, it had been pointed out that without a formal agreement, “neither a transaction nor its terms can be guaranteed.”
In a statement from Chief Executive Officer (CEO) Jose Manuel Albesa, Puig highlighted the “enriching” nature of the discussions and highlighted the strength of the business model. Albesa announced that the group would continue to focus on implementing its value creation strategy for shareholders. At the same time, the company does not rule out further mergers and acquisitions (M&A).
“We appreciate the enriching discussions we have had with The Estée Lauder Companies,” said Jose Manuel Albesa in the statement to the Spanish Securities and Exchange Commission (CNMV). “Puig has a solid growth record that exceeds the premium beauty market,” it continued. He also emphasizes: “We remain fully focused on implementing our strategy and driving profitable growth, always keeping the interests of all our stakeholders in mind.” Albesa added: “This decision does not change our strategic roadmap. We continue to build on our strengths in the premium beauty segment, with management focused on brands, creativity, agility and disciplined growth.”
Looking at the company’s development, Puig points to its 112-year history as well as the most recent results for the 2025 financial year and the first quarter of 2026. There it is said that the company has “demonstrated a special corporate culture” that makes it possible to fulfill commitments since the IPO, achieve growth targets, improve margins and strengthen the balance sheet. Albesa further emphasizes: “Our solid capital structure gives us the flexibility to pursue a wide range of strategic alternatives that are consistent with our long-term priorities.” At the same time, he announces a continued selective and value-oriented M&A approach. Despite the failed merger, Puig reiterates his confidence in his own “love brands” and in the strength as an independent company.
Estée Lauder is considering portfolio adjustments
The announcement published at the same time by The Estée Lauder Companies largely follows Puig’s presentation in structure and content. The US company also emphasizes the constructive nature of the talks. Statements came from Stéphane de La Faverie, President and Chief Executive Officer of the Group, who addressed shareholders and highlighted the strength of the business model organized within the “One ELC” operating model.
De La Faverie said the company will continue to focus on executing its “Beauty Reimagined” growth strategy. A possible sale of assets is not ruled out.
“We are grateful for the discussions we have had with Puig,” the statement said. After the inconclusive conclusion, the company reaffirmed its confidence in the strength of its brands, teams and its own position as an independent group. “We are more optimistic than ever that we can unlock significant long-term value through Beauty Reimagined, and we remain focused on accelerating this progress.”
De La Faverie also emphasizes: “We have one of the strongest portfolios of luxury beauty brands in the world, supported by exceptional brand equity across categories, regions and consumer segments.” It goes on to say that the company is able to secure sustainable growth in the long term.
As part of the “Beauty Reimagined” strategy and the “One ELC” operating model, the organization should be more focused on speed, agility and customer focus. At the same time, the portfolio is continually reviewed in order to better exploit growth opportunities – including possible acquisitions and disposals. The goal remains to achieve sustainable sales growth, increase profitability and achieve a double-digit adjusted operating margin in the long term.
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