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PARIS — L'Oréal announced Thursday that it will not be bidding for the Japanese firm Kanebo.
In a statement, the French beauty giant said: "After thoroughly examining the Kanebo dossier, L'Oréal has decided not to make an offer, having been unable to identify enough synergies with Kanebo's activities."
Last week, it was reported that L'Oréal had teamed with Morgan Stanley in a bid to buy Kanebo, which is currently under restructuring by the Industrial Revitalization Corporation of Japan.
The market has long speculated that L'Oréal was interested in bidding on Kanebo, although L'Oréal never confirmed the rumors.
As reported, during a meeting with financial analysts here earlier in September, L'Oréal chairman and chief executive officer Lindsay Owen-Jones called the Kanebo sale a "rare and unique" opportunity, but added that the Japanese firm is not "necessarily the easiest to integrate in terms of synergies."
About 10 companies, including Kao, Kose and Johnson & Johnson, have reportedly reviewed the Kanebo dossier.
Industry sources estimate Kanebo will fetch as much as $4 billion.