The Estée Lauder Companies and Spanish beauty group Puig have terminated their discussions on a potential merger after failing to reach an agreement.
The two companies announced in March that they were in talks about a potential business combination, but stressed that there could be no assurances regarding the deal or its terms.
They ended the nearly two-month discussions on Thursday after reaching no agreement to proceed with a merger.
Both companies affirmed their ability to grow their businesses as standalone entities.
Estée Lauder said in a statement that it remains fully focused on its ‘Beauty Reimagined’ strategy, which is well underway and delivering positive results.
The beauty retailer owns brands such as Estée Lauder, La Mer, Bobbi Brown and Le Labo. It recently reported a 5 per cent increase in net sales for the third fiscal quarter.
“We are grateful for the conversations we have had with Puig,” said Stéphane de La Faverie, president and CEO of The Estée Lauder Companies. “Today, we are reiterating our confidence in the power of our incredible brands, our talented teams, and our strength as a standalone company.”
La Faverie said the company will continue to evaluate and evolve its portfolio, including potential acquisitions and divestitures, to drive growth.
“We remain relentlessly focused on driving sustainable sales growth, expanding profitability, and delivering a solid double-digit adjusted operating margin over time, all while creating long-term value for stockholders,” he added.
In a separate statement, Puig also said it remains focused on executing its strategy and delivering profitable growth.
“This decision does not change our strategic roadmap,” said Jose Manuel Albesa, CEO of Puig. “We continue to build on our strengths in premium beauty, our brand-centric approach, creativity, agility and disciplined growth.”
“Our robust capital structure gives us the flexibility to pursue a range of strategic choices aligned with our long-term priorities. We will continue to take a highly selective, value-driven approach to M&A to further complement our portfolio,” he added.
Founded in 1914, Puig owns brands such as Rabanne, Carolina Herrera, Jean Paul Gaultier, Nina Ricci and Byredo.
