Estee Lauder rises marginally amid merger talks with Puig
Shares of cosmetics maker Estee Lauder EL.N marginally up in premarket trading
EL is in talks with Spanish beauty group Puig Brands PUIGb.MC for a potential merger that could unite major beauty and fragrance names, the companies said on Monday
The deal would create a $40 billion luxury beauty group and boost their position in the fragrance industry, facing a slowdown after post-pandemic growth
Meanwhile, shares of Puig Brands rise 16.25%
J.P. Morgan says the deal makes strategic sense across products, geographies and channels long term but could divert focus from EL's ongoing turnaround
A source told Reuters the merger would help the combined group compete more effectively with L'Oreal OREP.PA
27 analysts rate EL's stock "hold" on average; median PT is $105 - data compiled by LSEG
As of last close, EL stock down 24.28% YTD
