Est\u00e9e Lauder Companies (ELC) is still open to acquisitions after merger talks with Spanish beauty group Puig ended, with valuation identified as the key issue, reported Reuters.<\/p>\n
Speaking at a Deutsche Bank consumer conference in France, ELC chief executive St\u00e9phane de La Faverie said the companies could not agree on financial terms.<\/p>\n
\u201cIf we cannot reach the growth and the profitability at the right price point, then that is not an option. And this is why, obviously, this deal didn’t go through, because it was not at the right price,\u201d he was quoted as saying, adding that the company would continue to look at opportunities.<\/p>\n
Earlier this year, the two companies announced<\/a> that merger discussions were taking place while also stating that no agreement had been secured and that there was no certainty a deal would be completed.<\/p>\n Those discussions ended formally late last month<\/a>.<\/p>\n In the event it had gone through, the deal would have combined two premium beauty businesses into a larger group that would have been better positioned to challenge L’Or\u00e9al.<\/p>\n Reuters later reported that the failure of the talks was also linked to leaks, differences between the controlling families behind the two companies, and requests from stakeholders, including make-up entrepreneur Charlotte Tilbury.<\/p>\n Separately, ELC said last month that it intended to cut between 9,000 and 10,000 jobs worldwide as part of its \u201cBeauty Reimagined\u201d strategy, which is aimed at delivering annual cost savings of up to $1.2bn.<\/p>\n The company is also involved in litigation.<\/p>\n