Tough blow for Puig. A few weeks ago, Next in Beauty reported that L'Oréal had reached an agreement to acquire Kering's luxury cosmetics and perfume division. Some firms in the sector were interested in taking over the distribution, manufacture, and marketing of the prestigious division. And one of them, as published by La Vanguardia, was Puig.**La Vanguardia has been able to confirm with sources close to the company that Marc Puig held "mature and advanced" talks until the last moment to take over Kering's perfumery and beauty division. Ultimately, Kering accepted L'Oréal's offer for 4 billion euros.**
Puig presented a proposal that combined payment in cash and shares of the Catalan company, as well as a share swap with the seller Kering.
What was Puig's proposal to take over Kering's beauty division?
According to sources consulted by La Vanguarida, Puig was willing to cede up to 20% of its capital to Kering, which would amount to around 1.6 billion euros. Puig, aware that it was impossible to reach the 4 billion offered by L'Oréal, proposed to Kering to continue in the business.
Something that made Kering reluctant to accept Puig's offer was the loss of around 40% of its capitalization, which has fallen from 14 billion euros to 8.3 billion, nothing to worry about if you know that it is something that has happened in several companies related to luxury, such as LVMH.