Health and beauty giant THG has terminated a deal with Japanese bank SoftBank, blaming “global macroeconomic conditions”.

THG said it had completed the internal separation of its key divisions as previously announced, but the call option with SoftBank to inject an additional $1.6 billion into its technology arm THG Ingenuity, its retail services division in line, will not go ahead either.

The company, which has a range of internet health and beauty retailers including Lookfantastic, Myprotein, ESPA and Illamasqua, has secured $730m (£610m) in new investment from a division of SoftBank to help to finance the expansion of its technological platform a few months before. listed in London in 2020.

The deal included a £900m investment option within 15 months to take a nearly 20% stake in Ingenuity.

The deal would have valued £4.5bn on this division alone, which at the time accounted for less than 1% of THG’s turnover.

THG said on Tuesday that the agreement with SoftBank had been “terminated by mutual agreement of the parties with immediate effect.”

A statement from THG to the market said: “THG plc announces that it has completed the internal separation of its main business divisions which, as previously announced, simplifies THG’s corporate division structures and provides it with option and flexibility material to enter into future strategic partnerships to generate added value for its stakeholders.

“Following the announcement on May 10, 2021 that THG has entered into an Option and Collaboration Agreement (with SB Management Limited, a wholly owned subsidiary of SoftBank Group Corp, THG also announces that in light of global macroeconomic conditions , the O&C Agreement has been terminated by mutual agreement between the parties with immediate effect.

“The call option granted by THG to SBM will therefore not be and will cease to be exercisable.”

Softbank continues to hold a 6.5% stake in the technology company.