Estée Lauder surges in premarket after Puig merger deal talks end
Estée Lauder's shares rose nearly 10% in premarket trading after the company announced the termination of merger talks with Puig. The beauty giant emphasized its commitment to its 'Beauty Reimagined' strategy, focusing on premium product launches and supply chain improvements. Analysts viewed the end of the merger discussions as a positive development, citing concerns over brand compatibility.
- ▪Estée Lauder's shares increased by 9.6% in premarket trading following the termination of merger talks with Puig.
- ▪The company is focusing on its 'Beauty Reimagined' strategy, which aims to enhance growth and streamline operations.
- ▪Analysts expressed relief over the termination, citing potential brand mismatches between Estée Lauder and Puig.
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Estée Lauder's shares were up almost 10% in premarket trading after talks over a potential merger with Spanish beauty group Puig were "terminated."The British beauty giant, which owns the Clinique and Tom Ford Beauty brands and is listed on the New York Stock Exchange, said in March that it was in discussions with Puig, the owner of Charlotte Tilbury and Jean Paul Gaultier, to combine the companies.But Estée Lauder said in a statement on Thursday that both parties had terminated discussions and that it remained focused on its "Beauty Reimagined" turnaround strategy, which involves focusing on premium launches and streamlining the company's supply chain."We are grateful for the conversations we have had with Puig," Estée's president and CEO, Stéphane de La Faverie, said in the statement.
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