Spanish beauty group Puig has warned that the Middle East war is affecting demand and will likely do so next quarter. Estée Lauder is hoping Puig's resiliability and strong cash flow will aid its turnaround after a prolonged sales slump. The company is considering a takeover bid for Puig’s Class B shares at 18 to 19 euros ($21-$22.20) per share. Despite cutting 7,000 jobs and streamlining brands, Estée's stock has fallen 1% since news of the merger talks emerged on March 23. Despite this, analysts believe a $40 billion merger would give Estée a fighting chance, raising its margins to an estimated 15.6%.