Spain's Puig tops STOXX on potential combination with Estee Lauder

Puig Brands

24/03/2026 08:45

** Shares of Puig PUIGb.MC jump 15.0% after the Spanish beauty company and Estee Lauder EL.N said they are in talks regarding a potential business combination

** The deal would create a $40 billion luxury beauty group and would bring brands such as Tom Ford, Carolina Herrera, Rabanne and Clinique under one roof

** "While valuation of beauty assets is under pressure in the broader space, we would think a deal would have to be at a substantial premium to the current share price," J.P.Morgan says

** The broker already expected Puig shares to be up strongly and added potential interest from other industry players could emerge

** Puig is the best performer on Spanish blue-chip IBEX35 .IBEX and pan-European STOXX 600 .STOXX indices

** The stock is on track for its best day ever

** Shares of Estee Lauder fell more than 7% on Monday after the talks were announced; the stock has been down around 24% YTD

 (Reporting by Tiago Brandao)

 ((Tiago.Brandao@thomsonreuters.com;))