U.S. cosmetics maker Estée Lauder and Spanish perfume group Puig had ​been finalising the details of a deal when talks fell apart late on Thursday, preventing a merger that would ‌have created a $40 billion luxury beauty giant.

The merged company would have put together brands such as Tom Ford, Clinique and MAC with Carolina Herrera and Charlotte Tilbury, popular with TikTok influencers and affluent millennials.

— Read more in Leaks, demands and a phone call: how Estée Lauder's Puig deal fell apart at Reuters.

The talks had not been popular with Estée Lauder investors. Its market value fell by about a fifth after the discussions became public. Its shares climbed by 11.5% in post-market trading on Thursday as investors welcomed the news that the discussions had been terminated. [...] Shares in Puig, which had fallen almost 30% since its €13.9bn (£12bn) flotation in 2024, rose 15% when the potential merger was announced. The company’s shares plunged by the same amount after the termination of the talks.

— Read more in Estée Lauder ends merger talks with Gaultier owner Puig at The Guardian.