May 21 (Reuters) – Estee Lauder and Puig have terminated talks related to a merger, they said on Thursday, bringing a close to the possibility of creating the world’s largest premium beauty player to compete with L’Oreal.
The two companies said in March they were in talks over a potential tie-up that would bring brands including Tom Ford, Carolina Herrera, Rabanne, Jean Paul Gaultier and Clinique under one roof.
Estee’s CEO said last week talks with Puig over the potential combination were ongoing.
The deal, if struck, would have given Estee access to Puig’s coveted perfume brands and direct-to-consumer sales channels. It would also make the U.S. group less reliant on its pressured home market and China. Puig generates more than 70% of its revenues from fragrances.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Shailesh Kuber)
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