US Stock Market Move | Estee Lauder Companies Inc. Class A (EL.US) falls more than 5%, plans to merge with Puig to create a new global beauty giant.

On Thursday, Estee Lauder Companies Inc. Class A (EL.US) fell more than 5% to $67.03. According to sources, Estee Lauder Companies Inc. Class A (EL.US) is in deep negotiations with Spanish beauty group Puig Brands (PUGBY.US) regarding a potential merger. These two family-controlled companies are expected to join forces to create a global top luxury cosmetics giant. Sources state that discussions are underway for a deal that would involve stock as the primary payment method, with the official announcement expected to be made in the coming weeks. Sources also mentioned that under the terms of the arrangement, Puig's Executive Chairman, Marc Puig, will join the board of the merged company and is expected to play a key role in the integration process of the two companies. The involvement of the Puig family core members in key positions will lay a strong foundation for the transaction and ensure a smooth transition of operations. Marc Puig, who served as the company's CEO until last month, will continue to be involved in important roles.