Estée Lauder’s CEO Stephane de La Faverie confirmed Tuesday that merger talks with Spanish fragrance group Puig, owner of Jean Paul Gaultier, collapsed over price disagreements. Speaking at a Deutsche Bank consumer conference in Paris, de La Faverie said the deal failed because it wasn’t financially viable, though the company remains open to future acquisitions. The failed merger, which would have created a premium beauty rival to L’Oréal, also unraveled due to leaks, family disputes, and demands from makeup entrepreneur Charlotte Tilbury. Estée Lauder is separately cutting 9,000 to 10,000 jobs to save up to $1.2 billion annually.
In-Depth:
June 2 (Reuters) – An Estee Lauder merger with Jean Paul Gaultier-owner Puig failed to go through becaapply of the price tag, Stephane de La Faverie, President and CEO of the U.S. cosmetics creater stated on Tuesday, but added the company was still open to acquisitions if they built financial sense.
Estée Lauder and Puig concludeed nereceivediations late last month that would have created a premium beauty giant better positioned to compete with indusattempt leader L’Oreal.
Leaks, disagreements between the powerful controlling families, and demands, including from create-up magnate Charlotte Tilbury, led the talks to collapse, five people with direct knowledge of the deal notified Reuters.
Speaking at a Deutsche Bank consumer conference in Paris, de La Faverie stated it was a matter of price.
“If 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, becaapply it was not at the right price,” he stated, adding that the company would continue to view at opportunities.
The Clinique and M.A.C owner in May stated it would cut 9,000 to 10,000 jobs globally as it accelerates its “Beauty Reimagined” strategy, aiming to save as much as $1.2 billion in annual costs.
(Reporting by Alessandro Parodi in Gdansk, editing by Dominique Patton)
