Estée Lauder chief executive Stéphane de La Faverie has said the cosmetics giant’s proposed merger with Jean Paul Gaultier-owner Puig collapsed because the price was not right.

The US beauty group and Puig ended negotiations late last month over a deal that would have created a major premium beauty business better placed to compete with L’Oréal.

Speaking at a Deutsche Bank consumer conference in Paris, de La Faverie said Estée Lauder remained open to acquisitions, but only where the financial case made sense.

“If we cannot reach the growth and the profitability at the right price point, then that is not an option,” he said.

“And this is why, obviously, this deal didn’t go through, because it was not at the right price.”

He added that Estée Lauder would continue to assess potential opportunities.

The talks reportedly broke down following a series of complications, including leaks, disagreements between the controlling families behind the two businesses and demands from stakeholders, including make-up entrepreneur Charlotte Tilbury.

A tie-up would have brought together Estée Lauder’s portfolio, which includes Clinique and M.A.C, with Puig’s luxury beauty and fashion brands, which include Jean Paul Gaultier, Rabanne and Carolina Herrera.

The comments come as Estée Lauder pushes ahead with its turnaround plan amid pressure on sales and profitability.

In May, the beauty giant said it would cut between 9,000 and 10,000 jobs globally as part of its “Beauty Reimagined” strategy.

The programme is designed to simplify the business and accelerate growth, with Estée Lauder targeting up to $1.2 billion in annual cost savings.

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