Finance
Spain's Puig Shares Jump After It Confirms Merger Talks With Estee Lauder
Published by Global Banking & Finance Review®
Posted on March 24, 2026
2 min readLast updated: March 24, 2026
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Puig shares soared about 16% on March 24, 2026, after confirming merger talks with Estée Lauder, potentially creating a $40 billion beauty powerhouse combining major brands.
Spain's Puig shares jump on Estee Lauder merger talks
Potential Merger Between Puig and Estee Lauder
By Gemma Guasch
Market Reaction and Share Performance
March 24 (Reuters) - Shares of Puig surged around 16% on Tuesday, on track for their best trading day on record, after the Spanish beauty group and Estee Lauder said on Monday they were in talks over a potential merger.
Implications for the Luxury Beauty Industry
The deal would create a $40 billion luxury beauty group and bring some of the world's biggest beauty and fragrance brands such as Tom Ford, Carolina Herrera, Rabanne and Clinique under the same roof.
Strategic Position in the Fragrance Market
The combination would give the companies a strategic position in the global fragrance industry, which is facing a slowdown in demand after several years of strong post-pandemic growth, as Puig brings in more than 70% of its revenues from fragrances.
Analyst Perspectives and Industry Context
"While valuation of beauty assets is under pressure in the broader space, we would think a deal would have to be at a substantial premium to the current share price," J.P. Morgan said in a note to investors.
Competitive Landscape and Recent Deals
Part of the rationale behind merging Estee Lauder and Puig is that a combined company would better compete with L'Oreal, a source familiar with the deal told Reuters on Monday.
The discussions between Estee and Puig come just months after Gucci-owner Kering agreed to sell its beauty business to L'Oreal for $4.7 billion.
Estee Lauder Share Performance
Estee Lauder's New York-listed shares closed 7.7% lower on Monday.
(Reporting by Gemma Guasch in Gdansk, editing by Milla Nissi-Prussak)
Key Takeaways
- •Puig confirmed “business combination” discussions with Estée Lauder via official filings, emphasizing no agreement yet reached (cincodias.elpais.com)
- •The merger could form a beauty giant worth approximately $40 billion, uniting brands like Tom Ford, Carolina Herrera, Rabanne and Clinique (cincodias.elpais.com)
- •While Puig stock jumped ~16%, Estée Lauder shares dropped around 8%, reflecting market caution amid uncertainties (cincodias.elpais.com)
References
Frequently Asked Questions about Spain's Puig shares jump after it confirms merger talks with Estee Lauder
1Why did Puig shares surge on Tuesday?
Puig shares surged around 16% after the company confirmed it was in merger talks with Estee Lauder.
2What is the potential value of the Puig and Estee Lauder merger?
The potential merger could create a $40 billion luxury beauty group.
3Which brands may be brought together by the Puig and Estee Lauder merger?
Brands such as Tom Ford, Carolina Herrera, Rabanne, and Clinique could be under the same group.
4How did Estee Lauder shares respond to the merger news?
Estee Lauder's New York-listed shares closed 7.7% lower on Monday following the news.
