Estee Lauder Companies Inc. has ended acquisition talks with Spanish beauty conglomerate Puig, according to reports from the Wall Street Journal. The decision terminates months of speculation that the two companies would merge to create one of the world's largest beauty companies.

The potential deal had drawn significant attention in the beauty industry, as a combination of the two firms would have created a formidable competitor in the global cosmetics market. Estee Lauder, known for brands including MAC, Clinique, and its namesake line, had been in discussions with Puig, which owns luxury brands such as Paco Rabanne, Carolina Herrera, and Jean Paul Gaultier.

The talks represented what would have been a major consolidation move in the beauty sector, where companies have increasingly sought scale to compete with industry giants and navigate changing consumer preferences. Both companies have significant international footprints and complementary brand portfolios spanning makeup, skincare, and fragrance categories.

Neither company provided specific details about why the acquisition discussions were terminated. The beauty industry has seen increased merger and acquisition activity in recent years as companies seek to expand their reach and diversify their product offerings in an increasingly competitive market.