Estee Lauder hits 9-month low as Puig deal sparks investor pushback

Loreal SA

24/03/2026 13:51

Updates

** Shares of cosmetics maker Estee Lauder EL.N hit over nine-month low, last down 7.4%

** EL is in talks with Spanish beauty group Puig Brands PUIGb.MC for a potential merger that could unite major beauty and fragrance names, the companies said on Monday

** The deal would create a $40 billion luxury beauty group and boost their position in the fragrance industry, facing a slowdown after post-pandemic growth

  ** Citigroup analysts said investors do not favor large-scale deals and EL is in the early stages of a business turnaround with a deal of this size creating complexity and execution risk

** Meanwhile, shares of Puig Brands rise 16.25%

** A source told Reuters the merger would help the combined group compete more effectively with L'Oreal OREP.PA

** 27 analysts rate EL's stock "hold" on average; median PT is $105 - data compiled by LSEG

** As of last close, EL stock down 24.28% YTD

 (Reporting by Kanishka Ajmera and Rashika Singh in Bengaluru)

 ((mail to: Kanishka.Ajmera@thomsonreuters.com))