Estée Lauder shares collapsed after the FT reported a possible merger with Spain's Puig
The merger could result in a $40 billion cosmetics giant
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Shares in US cosmetics giant Estée Lauder collapsed by 9% after the Financial Times reported that it is close to a merger deal with Spanish beauty group Puig. It owns designer brands such as Jean Paul Gaultier and Dries Van Noten. The deal could be announced as early as Monday, sources told the publication.
The combined company will be worth more than $40 billion, the FT writes. By comparison, the market value of Estée Lauder is about $28 billion, CNBC shows.
Puig IPOed in 2024 at a valuation of nearly €14 billion, but the company's stock price has since fallen, and at the market close on Monday, March 23, its capitalization was around €9 billion.
The exact terms of a possible merger are unknown, and everything could still fall through, the FT's interlocutors said.
This article was AI-translated and verified by a human editor
