Estée Lauder shares surged 11.9% on Friday. The rally followed the collapse of a proposed $40 billion merger with Spanish beauty group Puig. The companies officially announced the termination late Thursday. Negotiations for the deal were first disclosed in March 2026.
Disagreements over deal structure and change-of-control provisions scuttled the transaction. Sources indicate that beauty entrepreneur Charlotte Tilbury also demanded specific compensation regarding her minority stake.
Investors viewed the failed merger as a capital-preservation victory for the U.S. cosmetics giant. The company will now focus resources on its Beauty Reimagined turnaround program.