The merger could have created one of the largest players in the premium cosmetics and fragrance industry, bringing together brands such as Tom Ford, Clinique, and MAC on one side, and Carolina Herrera and Charlotte Tilbury on the other. The deal was designed to unite audiences ranging from mass luxury to TikTok-driven influencer aesthetics, strengthening both companies’ positions in the premium beauty segment.
However, according to Reuters sources, the deal began to unravel due to a combination of factors: information leaks, disagreements between controlling families, and additional demands, including issues related to ownership terms of Charlotte Tilbury and its founder.
A key moment came during a phone call on Thursday evening between Puig chairman Marc Puig and Estée Lauder chairman William Lauder. According to sources, this was when both sides realized the situation was rapidly deteriorating and the agreement might fall apart. Shortly afterward, advisers began exchanging messages, one of which reportedly included a symbolic “skull” emoji — indicating the deal was effectively dead.
Tensions intensified over the structure of the future company and the role of key assets, including Charlotte Tilbury and the sunscreen brand Isdin. Particularly sensitive was the issue of ownership stakes and control over assets that are not fully owned by Puig but represent a significant portion of its profits.
Additional pressure came from Estée Lauder investors, who were cautious about the merger. When talks first became public, Puig shares initially rose while Estée Lauder’s stock fell. However, after the deal ultimately collapsed, the situation reversed: Estée Lauder gained around 10%, while Puig dropped approximately 13%.
The negotiations lasted several months and took place across Paris, New York, and Barcelona. The parties discussed governance structure, a possible dual listing in the US and Spain, headquarters allocation, and business synergies. At the same time, both founding families — the Lauders and the Puigs — sought to retain influence in the combined entity, further complicating the process.
Separate sources of tension included demands related to Charlotte Tilbury’s equity stake and the terms of the founder’s involvement, which ultimately became one of the final factors that derailed the talks.
As a result, a potential deal that could have reshaped the global luxury beauty market and created a $40 billion powerhouse never materialized — becoming another example of how even the largest corporations can stumble over issues of structure, control, and power.
20:28 25 May, 2026