Estée Lauder (EL) Shares Rise Nearly 10% After Puig Merger Talks End

AI Summary

Estée Lauder's (EL) shares increased by 9.6% in premarket trading following the termination of merger discussions with Spanish beauty group Puig. Estée Lauder, with a market cap of $28 billion, had been in talks to merge with Puig, valued at approximately $3 billion. The company stated it will focus on its 'Beauty Reimagined' strategy, which is projected to incur costs between $1.2 billion and $1.6 billion. This strategy includes job cuts and aims to unlock long-term value, boosting investor confidence amid previous profitability concerns due to tariffs.