US Stock Market Move | Estee Lauder Companies Inc. Class A (EL.US) confirms talks with Spanish company Puig for merger, stock price drops nearly 8%

Estee Lauder Companies Inc. Class A (EL.US) stated on Monday that it is in talks with Spanish beauty group Puig regarding a potential merger of the two companies. Estee Lauder Companies Inc. Class A said in a statement, "No final decisions have been made, and no agreements have been reached." In response to this news, the stock price of the American beauty company fell by nearly 8%, while Puig's stock price rose by about 3%. As of the time of publication, Estee Lauder Companies Inc. Class A rose by 1.4% in after-hours trading. Puig owns well-known beauty brands such as Charlotte Tilbury, Jean Paul Gaultier, and Rabanne. The specific financial terms of the potential deal between the two companies have not been disclosed. Estee Lauder Companies Inc. Class A is currently facing continued obstacles due to tariffs and is also advancing its "reimagine beauty" transformation plan to revive its business. In its second-quarter earnings report released last month, the beauty retailer stated that it expects a $100 million impact on annual profitability due to tariffs. So far this year, the stock price of Estee Lauder Companies Inc. Class A has fallen by approximately 25%.