The Estée Lauder Companies Inc. (EL) and Puig Merging to Create Largest Premium Beauty Player

The Estée Lauder Companies Inc. (NYSE:EL) is one of the top consumer defensive stocks to buy now. On April 7, Reuters reported that the founding families of Spanish firm Puig and The Estée Lauder Companies Inc. (NYSE:EL) are poised to meet to negotiate terms of a potential merger.

The Estée Lauder Companies Inc. (EL) and Puig Merging to Create Largest Premium Beauty Player

The talks come on the heels of Puig and Estee Lauder confirming last month that they were exploring the prospects of creating the world’s largest premium beauty player. The combined company will own some of the most sought-after brands, including Tom Ford, Carolina Herrera, and Clinique.

A potential merger would be structured as a cash-and-share public takeover by Estée Lauder for Puig. The merger is also expected to dilute Lauder’s family control, bringing it closer to the Puig family’s stake. The combined company would be listed on the New York Stock Exchange and would have revenue of over 20 billion euros. It would also make it the world’s number one premium beauty group, ahead of L’Oréal Luxe.

The Estée Lauder Companies Inc. (NYSE:EL) is a global leader in high-end “prestige” beauty, manufacturing and marketing skincare, makeup, fragrance, and hair care products. It operates 20+ brands, including Estée Lauder, Clinique, La Mer, M·A·C, and The Ordinary, selling in 150 countries.

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