Spanish fragrance and fashion group Puig has ended negotiations with Estée Lauder over a potential merger, the company announced Thursday. The two firms had revealed on March 23 they were exploring a combination that would have created the world's third-largest cosmetics group, valued at approximately 35 billion euros ($40.71 billion). Puig posted record sales of 5.042 billion euros ($5.863 billion) last year, with net profit of 594 million euros ($692 million), up 11.8% from the prior year. CEO José Manuel Albesa, who succeeded Marc Puig in March, expressed confidence in the company's strength as an independent entity and its "highly selective, value-oriented approach" to future M&A.

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