An Estee Lauder merger with Jean Paul Gaultier-owner Puig failed to go through because of the price tag, Stephane de La Faverie, President and CEO of the US cosmetics maker said on Tuesday, but added the company was still open to acquisitions if they made financial sense.
Estee Lauder and Puig ended negotiations late last month that would have created a premium beauty giant better positioned to compete with industry leader L'Oreal.
Leaks, disagreements between the powerful controlling families, and demands, including from make-up magnate Charlotte Tilbury, led the talks to collapse, five people with direct knowledge of the deal told Reuters.
Speaking at a Deutsche Bank consumer conference in Paris, de La Faverie said 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, because it was not at the right price," he said, adding that the company would continue to look at opportunities.
The Clinique and M.A.C owner in May said 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.
