Essilor’s (approx.) 48 billion euro merger with Luxottica approved in China. The news takes the eyewear industry by storm…
Finally, after a long wait, the proposed tie-up between the two industry giants, Luxottica (Frames manufacturer, of Italy) and Essilor (Lens manufacturer of France) was approved by the antitrust regulator of the People’s Republic of China, SAMR, with certain commitments for conducting their business in China.
The commitments the companies have made to the SMAR, include informing SMAR about their future acquisition and to ensure the availability of their products to the customers in China on an unbiased basis.
The new company will be called EssilorLuxottica and is expected to become the behemoth of the industry. A number of other manufacturers are worried, as this tie-up can consume the entire eyewear industry, all on its own. With already big brands like Ray-Ban, Dolce&Gabbana, Prada, Vogue and Versace under their name, Essilor and Luxottica’s new association might as well just squeeze out some competitors.
On the other hand, some industry experts believe this association to bring a revolutionary change in terms of design, quality and innovations, as the EssilorLuxottica mission is to “help people see more, be more and live life to its fullest”.
After clearance from the Chinese authorities, the two companies’ discussions with the Turkish antitrust authority is in progress and the transaction is expected to be closed at the end of this September.