Puig Stock Plunges as Estée Lauder Merger Talks Collapse

By EC Assets · Published 22 May 2026 · Updated 28 May 2026

Puig Brands SA stock plunged today after merger talks with Estée Lauder Companies Inc. ended. The Spanish fashion company dropped significantly following the announcement that discussions for a potential business combination had been terminated without a deal. The two companies had been in talks since March 2026. Puig Brands stock fell 13.9% to trade at €15.19. Breaking News reports that Puig dropped 14%. The potential merger would have created a $40 billion high-end beauty group. This combined entity aimed to compete with industry leader L'Oreal. The proposed deal anticipated bringing together Estée Lauder brands such as Tom Ford, Clinique, and MAC with Puig's portfolio, which includes Carolina Herrera. Details suggest that demands from Charlotte Tilbury, founder of the beauty brand majority-owned by Puig, were among the issues leading to the collapse of the negotiations. Estée Lauder's shares responded positively, with the stock soaring 13% after hours. This turnaround suggests the market views the termination of talks favorably for Estée Lauder. The termination of merger talks is expected to cause a loss of the potential deal premium for Puig shares. This development suggests a shift in strategic direction for both companies. Estée Lauder had held discussions with Puig regarding a potential multi-billion-dollar acquisition. This article is intended for informational purposes only. It does not constitute investment advice.