Estée Lauder Secures JPMorgan to Structure €5 Billion Puig Acquisition

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4.21.2026

Quick Facts

Estée Lauder hired JPMorgan to structure €5 billion ($5.89 billion) in funding for its Puig acquisition bid
The deal would create a luxury beauty powerhouse with $40 billion market value and over $20 billion in annual revenue
Combined entity would jump Estée Lauder’s fragrance market share from 6% to 15%, matching L’Oréal’s 16%

Estée Lauder has commissioned J.P. Morgan to structure a financing package of around €5 billion ($5.89 billion) for its takeover bid of Spanish beauty firm Puig, according to reports from Spanish newspaper Expansion. The move escalates merger discussions that began in March 2026.

The proposed deal is structured primarily as a stock swap aimed at creating a luxury beauty powerhouse with an estimated market valuation of $40 billion and annual revenues exceeding $20 billion. Puig had a market capitalization of nearly €8.8 billion coming into the trading session, while Estée Lauder boasted a $28.7 billion market cap.

Puig delivered strong FY2025 performance with net revenue of €5.04 billion, up 7.8% like-for-like. The company recorded adjusted EBITDA of €1.05 billion with margins improving to 20.7% from 20.2% in FY2024. Puig maintained a gross profit margin of 75.1%, among the highest in the industry.

In contrast, Estée Lauder shares have fallen 24% year-to-date. The company announced plans to cut as many as 7,000 jobs by fiscal 2026, representing more than 11% of its workforce.

“Estée Lauder has lost its footing in recent years and needs to do something radical to get back on top,” said Dan Coatsworth, head of markets at AJ Bell. “A takeover of Puig is an interesting proposition, but history suggests that bolting two companies together is not a guaranteed recipe for success.”

The merger would create the world’s largest premium beauty player, consolidating brands including Tom Ford, Carolina Herrera, Rabanne, Jean Paul Gaultier, and Clinique under one roof. The combined fragrance portfolio would jumpstart Estée Lauder’s market share from roughly 6% to 15%, placing it neck-and-neck with L’Oréal’s 16%.

Shares of Puig Brands closed 13.4% higher Tuesday after Estée Lauder confirmed merger talks. Shares of Estée Lauder fell 9.5%, after dropping 7.7% in the previous session.

The deal faces internal challenges. Jane Lauder reportedly opposes the transaction, while Manuel Puig, the company’s largest shareholder, has long resisted the deal. Executive Chairman Marc Puig strongly supports the merger. Any agreement would likely require Manuel Puig’s backing.

The potential merger follows L’Oréal’s acquisition of Kering’s beauty business in a $4.6 billion deal, accelerating consolidation among major beauty players.