U.S. cosmetics maker Estée Lauder and Spanish perfume group Puig had ​been finalising the details of a deal when talks fell apart late on Thursday, preventing a merger that would ‌have created a $40 billion luxury beauty giant.

The merged company would have put together brands such as Tom Ford, Clinique and MAC with Carolina Herrera and Charlotte Tilbury, popular with TikTok influencers and affluent millennials.

— Read more in Leaks, demands and a phone call: how Estée Lauder's Puig deal fell apart at Reuters.

The talks had not been popular with Estée Lauder investors. Its market value fell by about a fifth after the discussions became public. Its shares climbed by 11.5% in post-market trading on Thursday as investors welcomed the news that the discussions had been terminated. [...] Shares in Puig, which had fallen almost 30% since its €13.9bn (£12bn) flotation in 2024, rose 15% when the potential merger was announced. The company’s shares plunged by the same amount after the termination of the talks.

— Read more in Estée Lauder ends merger talks with Gaultier owner Puig at The Guardian.

Steven Wildenberg, founder and CEO of sales at creative agency Golden Meteors, whose clients include beauty and fragrance brands like Borntostandout and Arquiste, agreed that both Puig and Estée Lauder have something to gain from a potential merger, with the latter, in particular, standing to benefit from the success Puig has had in the fragrance category.

“Puig has the fragrance portfolio that Estée Lauder desperately needs,” said Wildenberg.

— Read more in What a potential Puig and Estée Lauder merger means for fragrance at Glossy.

Estee Lauder and the perfume maker Puig are in merger talks that would potentially put brands like MAC, Clinique, Charlotte Tilbury and Jean Paul Gaultier under one roof.

Estee Lauder Cos. confirmed the discussions but said that no agreement has been reached with the century-old Spanish company.

— Read more in Estee Lauder confirms talks with Spanish perfume maker Puig at AP, or see Cosmetics giant Estée Lauder in merger talks with owner of Jean Paul Gaultier and Rabanne at BBC, Estée Lauder in talks on merger with Jean Paul Gaultier owner Puig at The Guardian, Puig and Estée Lauder Discuss Merger: Why It Matters at Vogue.