Estee Lauder Companies Inc (NYSE:EL, XETRA:ELAA) shares rose about 10% on Wednesday after the company confirmed it has ended discussions with Puig regarding a potential business combination, removing uncertainty around a deal that had been under consideration since March.
In a statement, Estée Lauder said both parties have terminated talks on the proposed transaction, noting there is no agreement in place.
The company said that it will continue to operate independently and focus on executing its “Beauty Reimagined” strategy.
“We are grateful for the conversations we have had with Puig,” Estée Lauder CEO Stéphane de La Faverie said in a statement.
He reiterated confidence in Estée Lauder’s brand portfolio and its ability to generate long-term value as a standalone business.
The company highlighted ongoing progress under its strategic overhaul, including its “One ELC” operating model aimed at improving agility, accelerating innovation, and strengthening global execution across its prestige beauty brands.
Estée Lauder said it will continue to assess portfolio opportunities, including both acquisitions and divestitures, as part of its broader growth strategy. Management also reaffirmed its focus on driving sustainable revenue growth and expanding profitability over time.
Shares of Spain-listed Puig (BME:PUIG) fell about 14% on the update.