'Beauty Giant' M&A Shakes Market... 2 Trillion Won Vanished in a Day

The shares of The Estée Lauder Companies Inc. (NYSE: EL) closed at $71.75 on the 24th, plunging 9.51% in a single day. Its market capitalization fell to about $17.7 billion (roughly KRW 24 trillion), erasing approximately $1.5 billion (around KRW 2.1 trillion) in value in just one session. Trading volume exceeded 12 million shares.

On the same day, the company disclosed that it is in discussions for a potential business combination with Spain’s beauty and fashion group Puig, acknowledging merger possibilities but noting that no final agreement or terms have been set.

Following the merger reports, Puig’s shares surged by double digits, while Estée Lauder’s slid between 7% and 9%, prompting some analysts to warn that a large-scale M&A could weigh on the ongoing turnaround strategy.

Founded in 1946, Estée Lauder is a U.S.-based prestige cosmetics group that owns more than 30 global beauty brands—including Clinique, MAC, La Mer and Jo Malone London—and sells products in over 150 countries worldwide.

When growth slowed due to weaker demand in China and a downturn in travel retail, the company launched its “Beauty Reimagined” strategy, focusing on cost savings, portfolio reshaping and bolstering its digital and fragrance businesses. In its most recent quarter, revenue and margins improved, prompting management to raise its full-year outlook.