Estee Lauder Shares Jump 9% as Puig Merger Talks Collapse
EL sits 38% above its 52-week low of $62.57.
Summary
Estee Lauder and Spanish beauty group Puig have officially terminated their merger discussions. This news follows an 8-K filing in March confirming the initial talks and subsequent reports of advanced negotiations. Estee Lauder's shares are climbing roughly 9% premarket, indicating a positive market reaction to the deal's failure, especially given that the stock had previously fallen on analyst concerns when the merger talks were first disclosed. Conversely, Puig's shares plunged 13% in Europe. The proposed deal would have significantly expanded Estee Lauder's fragrance portfolio and international presence.
At the time of this announcement, EL was trading at $86.50 on NYSE in the Trade & Services sector, with a market capitalization of approximately $28.5B. The 52-week trading range was $62.57 to $121.64. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.