Overview
- Both companies, in statements Monday, said they are discussing a possible business combination and stressed no decision or agreement has been reached.
- If completed, the tie-up would create about €17 billion in annual sales by combining Puig’s strength in perfumes with Estée Lauder’s focus on skin care and makeup.
- Media reports, citing the Wall Street Journal, say any transaction could include a mix of stock and cash, though the companies have not detailed terms.
- Estée Lauder has been trying to turn around its business after an 8% revenue drop and a loss of more than $1.1 billion last year, with a plan to cut 5,800 to 7,000 jobs through 2026.
- Investor reaction was cautious, with Estée Lauder shares falling nearly 8% Monday in New York as some questioned the benefits of a tie-up.