GoKawiilSometimes even mega-beauty companies need help with their look. Estée Lauder announced Monday it’s in talks to merge with Puig, a Spanish beauty company that owns Charlotte Tilbury, Jean Paul Gaultier, and Rabanne.
The potential deal comes as Estée’s “Beauty Reimagined” plan struggles to take off. The company’s stock has dropped 25% this year and fell another 8% following the merger announcement. Last month, Estée Lauder warned that tariffs would hit its full-year profitability by $100 million.
“No final decision has been made and no agreement has been reached,” the company said in a statement. Financial details of the potential deal were not disclosed. But Puig’s stock rose roughly 3% on the news, suggesting investors see the merger as better for the Spanish company than for the struggling U.S. beauty retailer.