Estée Lauder and Puig end negotiations on potential merger

Estée Lauder and Spain's Puig announced the end of negotiations on a potential business combination, putting an end to months of speculation about a possible merger between two of the largest global prestige beauty companies.

In a statement, Estée Lauder stated that it will remain focused on executing the "Beauty Reimagined" strategy, aimed at accelerating growth, innovation and profitability.

"Today, we reiterate our confidence in the power of our brands, our talented teams and our strength as an independent company", declared the company's chief executive, Stéphane de La Faverie.

The companies had confirmed in March that they were holding talks about a possible transaction, but highlighted, at the time, that there were no guarantees that an agreement would be reached or about the terms.

Estée Lauder, owner of brands such as Clinique, M.A.C and Bobbi Brown, has been undergoing a restructuring process in recent years, seeking to expand market share and attract younger consumers.

According to the company, the initial results of the transformation strategy are already positive.

In the statement, the company highlighted that it will continue to evaluate the portfolio to identify growth opportunities, including possible acquisitions and divestments. Estée Lauder also reiterated the goal of achieving sustainable sales growth, profitability expansion and double-digit adjusted operating margin over time.

Source: CNN