Puig in talks with The Estée Lauder Companies for possible merger
The Spanish beauty company Puig Brands B announced this Monday that it is in negotiations with the American company The Estée Lauder Companies to explore the possibility of merging their businessesas confirmed by the Spanish company.
Conversation details
According to the information provided by Puig to the National Securities Market Commission (CNMV), To date, no final decision has been made nor has an agreement been reached between both parties. Importantly, at this time, there can be no assurance that the merger will occur or the terms on which it would occur.
Specifically in the textual context of the statement «Puig confirms that is holding talks about a possible business combination with The Estée Lauder Companies Inc., which would imply the potential merger of the business of both companies. No final decision has been made and no agreement has been reached. As long as there is no agreement, there can be no guarantee that there can be a transaction or its terms.»
Changes in Puig’s structure
On March 17, Puig’s board of directors announced significant changes to its management structure. José Manuel Albesa was appointed as CEO of the company, replacing Marc Puig, who resigned from his position but will continue to be the company’s executive president.
New appointments
In addition, Miquel Àngel Serra was appointed as financial director, replacing Joan Albiol. Despite this change, Albiol will continue to perform the duties of non-member secretary of Puig’s board of directors.
In summary, Puig and The Estée Lauder Companies are in the process of evaluating a possible merger, although a definitive agreement has not been reached. The changes in Puig’s senior management reflect an internal restructuring in the Spanish company. We will remain attentive to any future developments in this potential operation.
Reflection in bag
At the moment Esteé Lauder shares fall significantly on Wall Street in the afterhoursafter closing Monday’s session with gains of 0.71%. De facto, they fell 7.72%.
Its market capitalization exceeds 28,681 million dollars at yesterday’s close, while Puig was worth almost 8,850 million euros at yesterday’s close.
So far this year, Puig remains positive with advances of 4.71%.