Italy's Luxottica and France's Essilor have agreed a 46 billion euro ($49 billion) merger to create a global eyewear powerhouse with annual revenue of more than 15 billion euros. “However, both companies rely on supplying high-margin premium products and I do not believe that it is in their interests to offer these in an online competitive market.”, He concluded: “With this in mind, I am sure that they will want to continue to work closely with independent practices like ourselves. Mergers: Commission clears merger between Essilor and Luxottica. The merger means Essilor lenses and Luxottica frames will be designed, manufactured, distributed and retailed by a global corporation using a … The Essilor Luxottica merger is the largest in the history of global eye care – exceeding the value of the Alcon Novartis merger by about four times with a combined market capitalisation of almost AU$65 billion. Read and download Luxottica Press Releases from 2005 and on. Canada is one of the five jurisdictions where antitrust approvals are a condition precedent to the closing of the transaction. Essilor and Delfin have announced the signing of an agreement that is designed to create an eyewear giant “dedicated to visual health and a superior consumer experience” by combining Essilor and the Luxottica Group. Essilor & Luxottica Merger January 17, 2017 10:49 AM | Anonymous. Both companies' share prices rose following the news. How it will affect the Australian and New Zealand market is uncertain. The combination appears as a genuine merger of equals, with both companies’ EV being in the range of €26-27bn. In January 2017, Luxottica announced a merger with Essilor. Initiating firm: Essilor. French lens maker Essilor International and Italian eyewear company Luxottica Group have completed their €48 billion merger to create one of the largest players in the eyewear industry. Essilor and Luxottica Merger - Official Press Release January 16th 2016. Though advisers on the deal have presented it as a merger of equals, Del Vecchio will be the biggest shareholder of the combined group with a stake of between 31 percent and 38 percent through his family holding company Delfin. The combination appears as a genuine merger of equals, with both companies’ EV being in the range of €26-27bn. Essilor and Luxottica Marriage Approved By Daniel Feldman, October 1, 20 LUXEMBOURG and CHARENTON-LE-PONT, France—Twenty months after announcing the biggest deal in optical industry history,Delfin S.a.r.l, the majority shareholder of Luxottica Group S.p.A. and Essilor International have completed the combination of Essilor and Luxottica. You must be logged in to join the discussion. Luxottica said in September 2014 that discussions had taken place in 2013 but were dropped for a number of reasons, including shareholding governance issues. The announcement was made by Mark Zuckerberg during Facebook Connect, an annual conference held virtually from California. No stranger to large-scale acquisition, EssilorLuxottica itself is a result of the €46bn merger of Italy’s Luxottica Group SpA and France’s Essilor International SA in 2017. Study and gain CET points through OT’s online CET exams, and access archived CET, CPD articles and skills guides in our education library, News and features about the latest scientific developments and advances in optometry, ophthalmology and eye medicine, News and features about the latest developments in optics with a focus on industry, News and features about the latest developments relating to professional support from across optics. The concern rose in 2017, when Luxottica announced a merger with the French lenses manufacturer Essilor worth $49 billion. “Finally ... two products which are naturally complementary -- namely frames and lenses -- will be designed, manufactured and distributed under the same roof,” Luxottica’s 81-year-old founder Leonardo Del Vecchio said in a statement on Monday. The multiples will continue to sell Luxottica brand frames - they have to because all the other multiples do - the following sheep thing... Essilor lenses will continue to be sold by both multiples and the idiot Independents who still think Essilor is on their side. Essilor and Delfin, the majority shareholder of Luxottica, entered into a combination agreement to establish a permanent, single economic management of the businesses currently operated by Essilor and Luxottica. PARIS and MILAN—Plans for a mega merger of Essilor [Euronext Paris: EI] and Luxottica [MTA: LUX; NYSE: LUX], two global giants of the eyewear industry, were announced today by Essilor and Delfin Sarl, the Luxembourg based holding company of the Del Vecchio family, the majority owners of Luxottica. The deal is expected to close by the end of the year and Del Vecchio said he is confident there will be no problems gaining approval from competition authorities. Being a relatively recent announcement, there is still much speculation about the merger and opinions about its likely impact vary. Independent practice owner and AOP councillor for the East Midlands, Tushar Majithia, told OT: “It is worrying that one company will have such a dominant position in the industry.”. Following the contribution by Delfin, at the time the majority shareholder of Luxottica, of its 62.42 percent stake in Luxottica to Essilor on Oct. 1, Essilor became the parent company of Luxottica and was renamed EssilorLuxottica. Luxottica’s third-quarter results had showed revenue from its online platforms grew by 18 percent, with the company stating that e-commerce had been targeted as an area for accelerated growth in 2017. Luxottica, which owns the Ray-Ban, Persol and Oakley brands, agreed in January 2017 to merge with Essilor in a deal that would create a company with a combined market value of about 46.3 billion euros ($56.6 billion). 62%) to Essilor in return for newly issued Essilor shares, at an exchange ratio of 0.461 Essilor shares for each Luxottica share. Mr Sagnières explained: “Our project has one simple motivation – to better respond to the needs of an immense global population in vision correction and vision protection by bringing together two great companies, one dedicated to lenses and the other to frames.”, He added: “Luxottica has built prestigious brands, backed by an industry state-of-the-art supply chain and distribution network. According to the terms of the deal, Delfin will contribute its entire stake in Luxottica (approx. It is said that the new group will combine two major global players in the eyewear industry with a strong brand portfolio, global distribution capabilities and complementary expertise in ophthalmic lenses, prescription frames and sunglasses. On January 16, 2017, Italy-based eyewear leader Luxottica SpA and French lensmaker Essilor International SA announced one of the largest cross-border mergers ever in Europe. PDF 0.03MB. French optical lens manufacturer Essilor International and Italian frame maker Luxottica Group announced plans for a $50 billion merger last week, … The French eyewear company Essilor and the Italian eyewear Luxottica announced Monday a 46 billion euros ($49 billion) merger deal and the merger will create a … Essilor buys Luxottica for $24Bn In reading the Bloomberg’s article on the topic, the transaction does look like a merger rather than a takeover. It will also leave smaller rivals lagging even further behind. Following the contribution by Delfin, at the time the majority shareholder of Luxottica, of its 62.42 percent stake in Luxottica to Essilor on Oct. 1, Essilor became the parent company of Luxottica and was renamed EssilorLuxottica. Essilor and Luxottica have complementary businesses that provide the opportunity to offer customers combined solutions including Essilor's lenses and Luxottica's frames, thereby driving the value of their products. The transaction, announced in January, will be one of biggest cross-border deals ever completed in Europe, and will create an industry powerhouse with annual revenue of more than €15bn. Shares in Luxottica were up by 8.6 percent at 53.80 euros by 1405 GMT (9:05 a.m. France’s Essilor, the biggest manufacturer of lenses, agreed a €50bn merger with Italy’s Luxottica, ... on November 29, he behaved as if Essilor had bought Luxottica. The deal is a merger of equals, meaning that is it is unclear who is the dominant party, and who is to provide the greatest synergies to the new entity. “The strategic rationale is strong,” JPMorgan Cazenove analysts said in a note, adding that the deal defuses the risk of growing competition between two groups that had been encroaching on each other’s areas of expertise in recent years, with Essilor buying online retailers and Luxottica investing in lens manufacturing. Luxury eyewear specialists, Italian frame manufacturer Luxottica Group and French optical lens producer Essilor International, have announced that they are to merge in an all stock deal worth $49bn. This includes updates from optical organisations such as the AOP and the GOC, News and in-depth features about business management and career development in optics, Explore the latest UK and global jobs in the optical sector for optometrists, dispensing opticians and more, A global eyewear giant is being created ‘to answer the growing needs in visual health and the appetite for premium branded products’. The combination appears as a genuine merger of equals, with both companies’ EV being in the range of €26-27bn. Luxottica, which owns the Oakley and Ray-Ban brands, currently has a 14 percent market share of the eyewear industry. Submitted on Tuesday, December 6, 2016 - 1:07pm Prada celebrates its most iconic sunglasses which were originally born on the Prada runway and updated to create this new special collection, Prada Minimal Baroque. Estimated value: $54 Bn (including net debt) Announcement: January 2017. The combined entity would command more than one quarter of global value sales of eyewear. Finally, after 50 years, two products which are naturally complementary, namely frames and lenses, will be designed, manufactured and distributed under the same roof. Lex’s Jonathan's Guthrie and Alan Livsey discuss the €50bn merger between Luxottica, the leading consumer eyewear group and owner of Ray-Ban, Oakley and Sunglass Hut, and Essilor… The companies completed their merger in October. But there certainly should be. The third-quarter e-commerce growth far exceeded that for overall sales, which rose by 1.4 percent at constant exchange rates. France’s Essilor is the world’s number one manufacturer of lenses and contact lenses, while Italy’s Luxottica is the leading frame manufacturer. Another independent practice owner, and AOP councillor for London, Gordon Ilett, said: “My view is that this merger completes the missing piece in the vertically integrated, global business model of the Luxottica Group. Dutch retailer GrandVision. Essilor Luxottica Merger is COMPLETE October 1, 2018 What was first announced in January of 2017—that Essilor and Luxottica planned to merge—has finally come to completion, with both optical giants revealing today the successful completion of the corporate combination. MILAN/PARIS (Reuters) - Italy's Luxottica LUX.MI and France's Essilor ESSI.PA have agreed a 46 billion euro ($49 billion) merger to create a global eyewear powerhouse with annual revenue of more than 15 billion euros. PARIS and MILAN—Two optical giants, Luxottica (NYSE:LUX) and Essilor (Reuters: ESSI.PA), have agreed to merge in a mega deal that would reshape the international eyewear industry, according to reports published tonight in the Financial Times, Reuters and other financial sites. The combined entity would command more than one quarter of global value sales of eyewear. Essilor and Luxottica are to become one after a merger was approved by shareholders in Paris on May 11, 2017. Both companies have been grappling with slowing sales growth, hit by weakness in North America, and face rising competition from cheaper rivals and the challenge of online distribution. F: 020 7251 8315, Company registered in England and Wales - number 404790, The Association of Optometrists is authorised and regulated by the Financial Conduct Authority (FCA) - reference number 313444, Website terms and conditions Another nail in the coffin of independent optometry in the U.K. Essilor International’s Special Meeting and Combined General Meeting at the Maison de la Mutualité in Paris, led by chair and CEO Hubert Sagnières and alongside Luxottica executive chair Leonardo Del Vecchio, saw the transaction finalized with widespread approval. “This marriage will take place and will work,” he said. Essilor and Delfin, the majority shareholder of Luxottica, entered into a combination agreement to establish a permanent, single economic management of the businesses currently operated by Essilor and Luxottica. Luxottica. In early 2017, the optical world was set abuzz when the industry’s largest frame manufacturer and distributor Luxottica announced it was planning to combine its business operations with Essilor International, the world’s preeminent vision lens and lab services provider. By Vision Monday Monday, January 16, 2017 12:15 AM. MILAN, Italy — Italy's Luxottica said on Friday that Chief Executive Massimo Vian would leave, as Chairman Leonardo Del Vecchio prepares the eyewear group he founded for a planned merger with France's Essilor. Use our search feature to retrieve official announcements and news from the Group. The deal will be a stock-for-stock merger with an exchange of 0.461 Essilor Shares for 1 Luxottica share. Italy's Luxottica and France's Essilor have agreed a €46 billion ($65 billion) merger deal to create a global powerhouse in the eyewear industry. have agreed a 46 billion euro ($49 billion) merger to create a global eyewear powerhouse with annual revenue of more than 15 billion euros. Del Vecchio, who grew up as an orphan but is now Italy’s second-richest person, said he had long dreamed of such a merger. The French lens maker will launch a mandatory exchange offer on all remaining Luxottica shares at the same ratio, with the aim of delisting Luxottica’s shares. PDF 0.13MB. T: 020 7549 2070 Why the $49 billion merger of eyewear giants Luxottica and Essilor worries some antitrust experts Published Sat, May 18 2019 7:00 AM EDT Updated Sat, May 18 2019 6:59 AM EDT Karin Shedd PARIS and MILAN—Plans for a mega merger of Essilor [Euronext Paris: EI] and Luxottica [MTA: LUX; NYSE: LUX], two global giants of the eyewear industry, were announced today by Essilor and Delfin Sarl, the Luxembourg based holding company of the Del Vecchio family, the majority owners of Luxottica. EssilorLuxottica brings together two pioneering and complementary global players with pro forma combined revenues in excess of AU$25 billion, nearly 150,000 employees and an unmatched global … Delfin will contribute its 62 percent stake in Luxottica at a ratio of 1 share in the Italian group for every 0.461 Essilor shares. The companies completed their merger in October. At the first general meeting of the new group, on November 29, he behaved as if Essilor had bought Luxottica. According to the terms of the deal, Delfin will contribute its entire stake in Luxottica (approx. A source close to the deal said that the two companies’ business models, operations and strategy have converged since then and that the merger makes more sense now, given growing competition. PDF 0.33MB. The deal also removes -- for now at least -- uncertainty over succession at Luxottica, which has lost three CEOs since 2014 because of rifts with Del Vecchio. 62%) to Essilor in return for newly issued Essilor shares, at an exchange ratio of 0.461 Essilor shares for each Luxottica share. The 45 billion euro (US $47.8 billion) deal was set to be announced on Monday prior to the opening of the market, according to the news agency, which cited "a source with knowledge of the matter." essilor luxottica merger, We sat down with Dr. Purcell at last week’s Transitions Academy to discuss the other side of the picture. Luxottica also makes sunglasses and prescription frames for designer brands such as Chanel, Prada, Giorgio Armani, Burberry, Versace, Dolce and Gabbana, Miu Miu and Tory Burch. Video: Luxottica and Essilor agree €50bn merger Finally, there is the nagging question of who will really run the merged company. A source close to the deal said no arrangements had been made at this stage for when Del Vecchio will retire. On January 16, 2017, the Parties announced the proposed full merger of their respective businesses (the “Transaction”). Charenton-le-Pont, France and Milan, Italy (November 28, 2017 – 8:00 a.m.) – Essilor (Euronext Paris: EI) and Luxottica (MTA: LUX) today announced the proposed combination between the two companies has been cleared by the Canadian Competition Bureau. Luxottica also makes sunglasses and prescription frames for designer brands such as Chanel, Prada, Giorgio Armani, Burberry, Versace, Dolce and Gabbana, Miu Miu and Tory Burch. Essilor and Luxottica have successfully combined to create EssilorLuxottica, a global leader in the eye care and eyewear industry, according to a press release issued by the combined company today. Watch more: Top vaccine makers Merck and … Essilor and Luxottica have announced a merger in Europe. See here for a complete list of exchanges and delays. “Whether the UK market share, following this merger, is sufficient for examination by the competition authorities is open to debate, but the effect of it will be reduced choice for the consumer and most likely, reduced quality products longer term,” he concluded. The merged EssilorLuxottica will have 140,000 staff and will be headquartered and listed in Paris. European Commission - Press release Brussels, 1 March 2018 The European Commission has approved under the EU Merger Regulation the proposed merger between Essilor and Luxottica, two leaders in the optical industry. Since their impending merger was announced in January, there has been remarkably little comment about the huge proposed deal to combine Essilor and Luxottica. The new business, with annual sales worth almost €16bn, more than 140,000 employees and sales in over 150 countries, is expected to provide a growth platform “ideally positioned to seize future opportunities.”. Eyewear Industry Giants Essilor and Luxottica Announce Merger; Historic Deal Will Reshape the Optical Industry . 25 Aug 2020. Essilor and Luxottica announced that the European Commission has initiated a phase 2 review of their proposed merger, according to a joint press release. Essilor and Luxottica Merge, New Holding to Begin Trading in Paris on Oct. 2 The newly formed EssilorLuxottica will launch a mandatory exchange offer … It’s early days and we are looking for further assurances on their long-term strategy.”. 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