Shiseido terminates acquisition of OSEA

The much-anticipated deal between Japanese beauty giant Shiseido and skincare brand OSEA has officially fallen through, according to WWD. According to multiple sources, talks between the two companies in July suggested that Shiseido was close to acquiring OSEA, but neither company publicly confirmed the potential deal at the time.

OSEA was founded in 1996 by Jenefer and Melissa Palmer and is known for its seaweed skincare products, with its name representing the ocean, sun, earth and atmosphere. With an estimated annual sales of $100 million, OSEA seems to fit in with Shiseido's strategy, which has increasingly shifted its focus to skincare. OSEA's products are sold through major retailers such as Ulta Beauty and Nordstrom, as well as its website.

However, WWD later confirmed that the negotiations had stopped. Shiseido and OSEA both declined to comment for this story, with a Shiseido representative saying: "As a matter of company policy, we do not comment on market rumors or speculation."

Shiseido's share price has faced challenges recently, falling sharply in August after disappointing first-half results due to slowing demand in the Chinese market and restructuring costs. Although Shiseido's shares rose slightly on Thursday, its difficulties in the Chinese market are obvious.

Although the deal with Shiseido is no longer valid, there are reports that the two private equity firms that initially expressed interest in OSEA may renegotiate in the future.