The Estée Lauder Companies Inc. shares are trending overnight.

EL fell 7.72% to close at $79.29 on Monday and rose 0.57% in after-hours trading to $79.74. The stock is up 17.55% over the past year.

The move comes after the company confirmed it is in discussions regarding a potential business combination with Spanish luxury beauty and fashion company Puig Brands S.A. ( PUIGF ) (OTC PUGBY) (OTC:PUIGF).

Potential Merger On The Cards

According to a company press release, the potential transaction could result in a merger of the two businesses.

However, Estée Lauder said no final decision has been made and no agreement has been reached. The company added that there is no assurance a deal will be completed or regarding its terms.

The discussions remain subject to risks and uncertainties, including regulatory approvals and other closing conditions.

Leaders In Cosmetic And Fashion World

The Estée Lauder Companies Inc. is one of the world's leading manufacturers, marketers and sellers of skin care, makeup, fragrance and hair care products, with a presence in approximately 150 countries and territories.

Puig recently reported strong performance, with 2025 revenue exceeding EUR 5 billion ($5.79 billion) and continued growth across segments, reflecting strength in the premium beauty market.

Meanwhile, Estée Lauder has been executing a turnaround strategy, reporting improved margins and raising its fiscal 2026 outlook in its latest quarterly results.

Trading Metrics

Estée Lauder has a market capitalization of approximately $28.68 billion. The stock's 52-week high is $121.64, while its 52-week low is $48.37.

Benzinga Edge Rankings indicate Estee Lauder ( EL ) stock has a Momentum in the 42nd percentile and Value in the 14th percentile.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.