The Estée Lauder Companies has ended merger talks with Puig, confirming that the two beauty groups have terminated discussions around a potential business combination and that Estée Lauder will instead double down on its standalone Beauty Reimagined strategy and “One ELC” operating model.
Talks with Puig officially terminated
On March 23, 2026, The Estée Lauder Companies Inc. (ELC) and Puig publicly confirmed they were in discussions regarding a potential business combination, while warning that there was no assurance a deal would be reached or what its terms might be unless and until an agreement was signed. Industry commentary at the time suggested that a merger could have created a roughly 40 billion dollar beauty powerhouse spanning skin care, makeup, fragrance and fashion licenses.
In the latest update, ELC and Puig have now announced that those discussions have been terminated, with no transaction moving forward. No additional detail on the reasons…
or specific negotiation points has been disclosed. Estée Lauder reaffirms Beauty Reimagined and One ELC ELC states that it remains “fully focused” on executing Beauty Reimagined, its multi year strategy designed to restore sustainable sales growth and improve profitability after a period of slower performance.
That plan includes strengthening the group’s presence in high growth channels, markets and price tiers, while simplifying operations and sharpening brand focus. Linked to this, the company is rolling out its “One ELC” operating model, intended to create a faster, more agile, consumer centric organisation.
One ELC is positioned as a way to accelerate innovation, tighten execution, scale winning ideas globally and concentrate investment on the highest growth opportunities across the portfolio.
CEO Stéphane de La Faverie’s message In the press release, Stéphane de La Faverie, President and Chief Executive Officer of The Estée Lauder Companies, thanked Puig “for the conversations” and reiterated confidence in ELC as a standalone business…
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