Estée Lauder ends merger talks with Gaultier owner Puig
Summary
Estée Lauder and Spanish company Puig have stopped talks to merge into a large fashion and beauty company worth nearly $40 billion. They could not agree on control of the new company or how to distribute leadership positions.Key Facts
- Estée Lauder makes skincare, makeup, and fragrance brands like Clinique and Tom Ford Beauty.
- Puig owns brands such as Jean Paul Gaultier and Charlotte Tilbury and is listed on the Madrid stock exchange.
- The two companies disagreed on which family would control the merged company and how board seats would be shared.
- The talks began in March but ended without a deal.
- Estée Lauder’s stock price dropped about 20% when talks started but rose 11.5% after merger talks ended.
- Puig’s shares rose 15% when the merger was announced but fell the same after talks ended.
- Estée Lauder is mainly controlled by the Lauder family with strong voting power.
- Puig’s CEO said the company will keep focusing on selective deals to grow its brand portfolio.
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