Puig Brands (AO) | Buy | Puig and EL end conversations for a business combination, bad news

Research evidence excerpt

Puig Brands (AO) | Buy | Puig and EL end conversations for a business combination, bad news

rity shareholders for using "insider trading" information in the

past, among other reasons.

We expect a negative share price reaction today. The EL share price was up yesterday by more than 10% in the US after market.

Puig Brands and EL end the conversation for a business combination

On 23 March 2026, Puig Brands confirmed that it was in discussions with The Estée Lauder Companies regarding a potential

business combination of both groups.

Puig Brands announced yesterday evening that the conversations have ended and that the two companies have not reached an

agreement to proceed with a potential merger of their businesses. The company is not explaining the reasons for breaking the

negotiations.

Puig Brands remains fully focused on executing its strategy and delivering profitable growth across its portfolio of brands. The

decision does not alter Puig’s strategic roadmap, which remains focused on premium beauty, brand building and long-term value

generation.

According to Puig brands, this decision does not change its strategic roadmap. Puig continues to build on its strengths in

premium beauty, its brand-centric approach, creativity, agility and disciplined growth. Puig has a distinctive culture that has

enabled the company to meet all of its commitments since becoming a listed company, including delivering on its growth

guidance, improving margins, and strengthening its balance sheet.

In addition to this, Puig Brands added that its robust capital structure gives it the flexibility to pursue a range of strategic choices

aligned with its long-term priorities. Puig will continue to take a highly selective, value-driven approach to M&A to further

complement its portfolio.