Puig shares slump after end of merger talks with Estée Lauder

Shares of Spain’s Puig Brands SA plunged in Madrid trading after the company and U.S. cosmetics group Estée Lauder Companies said they had terminated merger discussions, with Puig falling roughly 13–14% at the session open.

The termination was announced on May 21, with Estée Lauder expressing thanks for the conversations and reiterating confidence in its standalone strategy, while Puig told Spain’s securities regulator it would remain focused on executing its existing plan and retained flexibility for selective acquisitions. Market reports and company statements carried by Reuters and the Associated Press provided the primary details.

Market reaction was immediate: Puig sank to the bottom of the STOXX 600 index and faced one of its worst trading sessions since its 2024 listing, while Estée Lauder shares jumped more than 10% in U.S. after-hours and premarket trading as investors welcomed the removal of deal uncertainty. Broker notes flagged a reversion of investor focus to operating performance.

Analysts noted the end of talks is likely to weigh on Puig’s share price in the near term as attention returns to recent quarterly trends and region-specific pressures, including travel retail and the Middle East. JP Morgan and other brokerages cited in market reports said slower sales growth disclosed earlier this year could come under closer scrutiny now that the potential merger premium is gone. Puig had postponed its Capital Markets Day during the discussions, and investors will watch for a rescheduled event and any strategic updates.

In the wider sector context, consolidation and strategic portfolio reshaping continue among global beauty groups, but governance, control and minority-shareholder clauses can be decisive in whether deals proceed. Market expectations now center on independent operational delivery from both groups: Puig must demonstrate its standalone growth trajectory, while Estée Lauder may accelerate internal restructuring efforts without the overhang of a potential combination. Investors will monitor upcoming trading updates and company guidance for clearer signals.