Why Is Estee Lauder Stock Down Today?

• The deal could be announced as soon as Monday, according to The Financial Times. 
• According to a separate report from The Wall Street Journal, there is no guarantee that an agreement will be reached as the talks are continuing.
• A potential deal could involve a mix of cash and stock, sources told WSJ.

Cosmetic company Estée Lauder (EL) is reportedly nearing a deal to combine with Spanish beauty group Puig.

The Financial Times reported on Monday, citing sources familiar with the matter, that the company, behind brands including Clinique, M.A.C, Bobbi Brown Cosmetics and Le Labo, is looking to combine with the Spanish group that owns Jean Paul Gaultier, Dries Van Noten, Rabanne and Charlotte Tilbury, to create a company that would be valued at more than $40 billion. The deal could be announced as soon as Monday, the report added.  

Estee confirmed the ongoing discussions with Puig but noted in an emailed statement to Stocktwits that no final decision has been made and no deal has been inked. “Unless and until an agreement is signed between the companies, there can be no assurances regarding the deal or its terms,” the company said. 

EL shares traded 7% lower at the time of writing.

Potential Deal Details

According to a separate report from The Wall Street Journal, citing sources familiar with the matter, a potential deal could involve a mix of cash and stock.

Puig currently has a market value of about $10 billion. In 2025, the company reported solid net revenue growth, delivering €5,042 million ($5855.85 million) in 2025, up +7.8% like-for-like, at the top end of its outlook range.

Earlier this month, the company also announced the separation of the roles of Chairman and CEO, and appointed Jose Manuel Albesa as CEO, while Marc Puig continues in the role of Executive Chairman.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around EL stock jumped from ‘bearish’ to ‘bullish’ territory, while message volume increased from ‘low’ to ‘normal’ levels.

EL stock has gained about 18% over the past 12 months.

Read More: Insmed’s New Lung Disease Study Data A Win For Company, Says Analyst

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Exchange Rate: €1= $1.16