France's Lingerie Diffusion has abandoned plans to take over local retailer Body One, although the companies are poised to strengthen their commercial ties.

Body One's listing on Paris' Marché Libre was suspended in September after lingerie manufacturer Lingerie Diffusion entered into exclusive talks to take a majority 68.73% stake in the retailer.

But the takeover was halted when Lingerie Diffusion decided not to pursue the deal, a Body One spokeswoman said today (22 November).

"The takeover is off - we decided not to go further," the spokeswoman said. "I think the main reason is that Lingerie Diffusion discovered that having a retail chain of 100 stores is not the same as having a small company of five people."

However, the two companies are poised to work more closely together, with Lingerie Diffusion increasing its supply of products to Body One, aiming to generate greater turnover and to improve Body One's margins.

They will also jointly establish an online shop under the Body One banner, selling Body One-branded items, some of which will be supplied by Lingerie Diffusion. The website, in which each company will have a 50% stake, is due to be launched at the end of December.