Shares of The Estée Lauder Companies Inc. (NYSE: EL) rose 12% in after-hours trading on Thursday after the company and Puig confirmed they had ended discussions about a potential business combination.
The two parties had publicly acknowledged on March 23, 2026 that they were engaged in dialogue over a possible merger but cautioned at the time that there were no guarantees a deal would be reached or what its terms might be. Those discussions have now concluded without an agreement, and Estee Lauder said it will continue to pursue its existing strategic agenda.
In a statement addressing the end of talks, Stéphane de La Faverie, President and Chief Executive Officer of The Estée Lauder Companies, expressed appreciation for the conversations with Puig and reiterated confidence in the company as an independent enterprise. The release included the following remarks from de La Faverie:
"We are grateful for the conversations we have had with Puig," said Stéphane de La Faverie, President and Chief Executive Officer of The Estée Lauder Companies. "Today, we are reiterating our confidence in the power of our incredible brands, our talented teams, and our strength as a standalone company. We are more optimistic than ever about our ability to unlock significant long-term value through Beauty Reimagined, and we remain focused on accelerating that progress."
The company described a shift toward a 'One ELC' operating model intended to create a faster, more agile organization that can accelerate innovation and scale winning ideas on a global basis. Management also said it will continue to review the company s portfolio to ensure it holds the right assets to pursue growth, explicitly noting that potential acquisitions and divestitures remain part of that evaluation.
Estee Lauder reiterated its financial priorities, stating it remains focused on driving sustainable sales growth, expanding profitability, and achieving a double-digit adjusted operating margin over time. The company framed these goals as central to delivering long-term value under its Beauty Reimagined program.
Market participants reacted quickly to the news, pushing the stock higher in after-hours trading. With the parties no longer in talks, the company emphasized its standalone strategy and the organizational changes it plans to implement in support of that approach.
Key takeaways from the announcement and subsequent market reaction are summarized below.