EssilorLuxottica announced recently that it has initiated legal proceedings before a District Court in Rotterdam, the Netherlands, to obtain information from GrandVision. This is to assess the way GrandVision has managed the course of its business during the COVID-19 crisis, as well as the extent to which GrandVision has breached its obligations under the support agreement.
EssilorLuxottica has begun legal proceedings to obtain information from GrandVision, which it is seeking to acquire in an $8 billion deal, on how the company is dealing with the COVID-19 crisis.
“This is to assess the way GrandVision has managed the course of its business during the COVID-19 crisis, as well as the extent to which GrandVision has breached its obligations under the support agreement,” EssilorLuxottica stated in a press release. “Despite repeated requests, GrandVision has not provided this information on a voluntary basis, leaving EssilorLuxottica with no other option but to resort to legal proceedings.”
GrandVision stated in its own press release that it “strongly disagrees with EssilorLuxottica’s demands and has full confidence that these claims will be rejected in court.”
EssilorLuxottica announced in July 2019 that it would acquire Hal Optical Investments B.V.’s 76.72% interest in the optical retailer then launch a mandatory public offer for all outstanding GrandVision shares. Through the acquisition, EssilorLuxottica would expand its optical retail platform, primarily in Europe, by adding more than 7,200 stores globally, over 37,000 employees and $4.1 billion in annual revenue. The deal is being scrutinized by European antitrust authorities.