After nearly two months of intense negotiations, Spanish fashion and beauty conglomerate Puig and U.S.-based The Estée Lauder Companies have officially terminated discussions regarding a potential merger, acquisition, or absorption. The two companies announced the end of talks, which had been ongoing since March 23, without reaching a deal.
Simultaneous announcements were made from Barcelona and New York on Thursday, May 21, at the close of Wall Street. Puig, owner of luxury fashion houses including Carolina Herrera, Jean Paul Gaultier, and Paco Rabanne, confirmed that no common ground was found. The company reiterated that from the outset, it had stated that without a formal agreement, "neither the completion of a transaction nor its terms can be guaranteed."
In a statement, Puig Executive Director Jose Manuel Albesa described the process as "enriching." He defended the strength of the company's business model and indicated that the group would remain focused on its strategic objectives, not ruling out future M&A evaluations.
"We appreciate the enriching conversations we have had with The Estée Lauder Companies," Albesa said in the statement submitted to Spain's National Securities Market Commission (CNMV). "Puig has a strong track record of growth, outperforming the luxury beauty market, and we remain fully focused on executing our strategy and driving profitable growth, always ensuring the interests of all our stakeholders."
He added: "This decision does not alter our strategic roadmap. We continue to leverage our strengths in luxury beauty, with management driven by brands, creativity, agility, and controlled growth. Throughout the company's 112-year history, and based on our latest results for fiscal 2025 and the first quarter of 2026, we have demonstrated a unique culture that has allowed us to meet all our commitments since our IPO, achieving our growth, margin improvement, and balance sheet strengthening targets."
Looking ahead, Albesa noted: "Our strong capital structure gives us the flexibility to consider a wide range of strategic alternatives aligned with our long-term priorities. We will continue to apply a highly selective, value-creation-focused approach to M&A to further complement our portfolio. Despite the failed merger with The Estée Lauder Companies, we reaffirm our confidence in our 'Love Brands,' our exceptional teams, and our strength as an independent company to create long-term value."
Estée Lauder Does Not Rule Out Asset Divestitures
The parallel statement from The Estée Lauder Companies closely mirrored Puig's release. It included comments from Stéphane de La Faverie, President and Executive Director of the U.S. beauty giant. Like his Spanish counterpart, he addressed shareholders, emphasizing the constructive nature of the talks and the strength of the company's operational model, dubbed "One ELC."
The U.S. group will remain focused on its strategic plan "Beauty Reimagined." Notably, management did not rule out potential portfolio adjustments.
"We are grateful for the discussions we had with Puig, and after concluding them without an agreement, we reaffirm our confidence in the power of our incredible brands, our talented teams, and our strength as an independent company. We are more optimistic than ever about our ability to unlock significant long-term value through 'Beauty Reimagined,' and we remain focused on accelerating that progress. We have one of the most powerful luxury beauty brand portfolios in the world, supported by exceptional brand equity across categories, geographies, and consumer segments. Therefore, we believe we are uniquely positioned to drive sustainable long-term growth globally," said de La Faverie.
He elaborated: "Through 'Beauty Reimagined' and the implementation of our 'One ELC' operating model, we are building a faster, more agile, consumer-centric organization that accelerates innovation, strengthens execution, scales winning ideas globally, and invests in the most significant growth opportunities in our portfolio."
As the company pursues this strategy, "we will continue to evaluate and evolve our portfolio to ensure we have the right assets to capture the most attractive growth opportunities, including potential acquisitions and divestitures," a comment suggesting the company is considering shedding parts of its portfolio. In any case, de La Faverie concluded, "we remain relentlessly focused on driving sustainable sales growth, improving profitability, and achieving a solid double-digit adjusted operating margin over time, while creating long-term value for shareholders."
Source: Read the original report | Published: May 22, 2026