Shares of Estée Lauder have tumbled 16% since the cosmetics group disclosed talks to acquire Spanish fragrance house Puig. The proposal arrived after a profit warning and geopolitical headwinds from the Iran conflict already dented the stock, leaving minority holders uneasy about the timing.

The Lauder family, which controls roughly one‑third of the equity through super‑voting shares, can push the deal through despite dissenting voices. Minority investors fear a costly misstep could be forced on them, especially as the company wrestles with a slide in operating margins from 20% in FY2022 to 8% recently.

Estée Lauder has struggled for years, its shares sinking more than 70% over the past five years. While recent performance hinted at a turnaround, the proposed acquisition would be the largest in the firm’s history, stretching resources already tied up in restructuring its core beauty business.

Investors view the Puig bid as a gamble that could either revive growth or deepen losses, and the market’s sharp reaction suggests confidence is already waning.