THE GIST Puig Brands just suffered its worst day on the stock market since its high-profile 2024 initial public offering.
Shares of the Spanish beauty giant plummeted 15% in Madrid after merger talks with US titan Estée Lauder collapsed without an agreement
The multi-billion-dollar transaction, which would have created a global cosmetics superpower capable of taking on L’Oréal, completely fell apart because of an explosive change-of-control clause held by celebrity makeup artist Charlotte Tilbury, whose eponymous brand is owned by Puig. WHAT HAPPENED The highly anticipated tie-up between the century-old Spanish family business and New York-based Estée Lauder is officially dead. The two cosmetics powerhouses had been locked in deep integration talks since March, aiming to form an empire with combined annual sales of around $20 billion.
The market reacted with brutal asymmetry on Friday; while Puig bled out in Madrid to trade at €15.18, Estée Lauder shares staged their biggest intraday rally in two years on Wall Street, surging over 12%. The wrecking ball that shattered the deal belongs to Charlotte Tilbury. Puig acquired a 78.5% controlling stake in her British makeup house back in 2020 for roughly €1 billion, leaving Tilbury with a 21.5% minority slice and her executive role as chairman.