Puig shares set to fall after Estée Lauder deal collapses

Puig's ​shares were expected to ​fall at least ‌10% on ​Friday after the Spanish perfumery and U.S. cosmetics maker Estée ‌Lauder said on Thursday they had ended merger talks. Puig was indicated to fall between 10% and 12% at ‌Friday's open, according to traders.

Puig's ​shares were expected to ​fall at least ‌10% on ​Friday after the Spanish perfumery and U.S. cosmetics maker Estée ‌Lauder said on Thursday they had ended merger talks.

Puig was indicated to fall between 10% and 12% at ‌Friday's open, according to traders. Estée shares rose ‌more than 10% in extended trading on Thursday. The failed talks, which would have created a $40 billion luxury beauty giant, remove ⁠a ​potential deal ⁠premium for Puig and come after the company reported slower ⁠sales growth for the first quarter in April. J.P. Morgan said ​in a note that the end of ⁠the talks was likely to weigh on Puig shares, with ⁠investors' ​attention returning to operating results as growth in fragrances normalises and pressure persists in the Middle ⁠East and travel retail.

Puig will remain focused on executing its ⁠strategy, ⁠it said in Thursday's statement, adding that its capital structure would give it flexibility for ‌selective ‌mergers and acquisitions.