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(Sharecast News) - Puig shares tumbled on Friday after the Spanish fashion and beauty company and US cosmetics giant Estee Lauder ended talks about a potential merger.
In a statement late on Thursday, Estee Lauder said it remains "fully focused" on continuing to execute its Beauty Reimagined strategy, which is well underway and delivering positive results.
President and chief executive Stephane de La Faverie said: "We are grateful for the conversations we have had with Puig.
"Today, we are reiterating our confidence in the power of our incredible brands, our talented teams, and our strength as a standalone company. We are more optimistic than ever about our ability to unlock significant long-term value through Beauty Reimagined, and we remain focused on accelerating that progress.
"We have one of the most powerful portfolios of prestige beauty brands in the world, supported by exceptional equity across categories, geographies, and consumer segments, and we believe we are uniquely positioned to drive sustainable long-term growth globally."
Puig shares surged in March after it confirmed it was in merger talks with Estee Lauder.
At 0907 BST, Puig shares were down 14.3% at 15.12, while Estee Lauder was up 9.4% in pre-market trade at $86.36.
Dan Coatsworth, head of markets at AJ Bell, said: "Handbags at dawn appear to have kiboshed a near-$40 billion fashion and beauty merger deal. Este Lauder and Puig's union has collapsed following speculation around a power struggle. Este Lauder's shareholders were ecstatic, with the company's share price jumping more than 10% in pre-market trading. That's investors' way of saying they've had a lucky escape.
"Este Lauder and Puig weren't the most obvious companies to park together. One is focused on skincare, makeup and haircare while the other specialises in designer clothing. They meet in the middle on fragrances and perfumes. Putting everything under one roof felt a bit like a jumble sale rather than a match made in heaven.
"A decision has been made to go it alone, meaning Este Lauder needs a plan B to drive its recovery efforts."
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