Estée Lauder remains open to acquisitions after Puig talks collapse, CEO says

Tuesday 02 June 2026 - 10:00

Estée Lauder remains open to future acquisitions following the collapse of merger discussions with Spanish fashion and beauty group Puig, according to the company’s chief executive.

The proposed deal, which would have created a major global player in the premium beauty industry, fell apart due to disagreements over valuation. Estée Lauder CEO Stéphane de La Faverie stated that the company is willing to pursue acquisitions, but only if they align with its financial and strategic objectives.

The merger between Estée Lauder and Puig had been seen as a move that could strengthen their position in the highly competitive global cosmetics market, where French giant L’Oréal remains the dominant leader. However, negotiations reportedly broke down after differences over pricing and structural conditions made the agreement unfeasible.

Industry observers noted that internal disagreements and complex negotiations involving key stakeholders contributed to the failure of the deal. Despite the setback, Estée Lauder emphasized that it continues to evaluate opportunities for expansion.

De La Faverie reiterated that any future acquisition must make financial sense, stressing that overvaluation remains a key barrier. He added that the company’s growth strategy will continue to focus on disciplined investment and long-term profitability.

Alongside its strategic review, Estée Lauder has also announced broader restructuring efforts, including workforce reductions, as it adapts to evolving global market conditions and changing consumer demand in the beauty sector.