Dec 15, 2017
Green light for merger between Essilor and Luxottica
Dec 15, 2017
The European Commission should give the green light, without any conditions, to the 48 billion euro merger between Essilor and Luxottica, said two sources familiar with the case on Thursday. The Commission, which is set to make a decision by March 8, and Luxottica have so far remained silent on the matter.
Essilor shares went up by 0.31 percent on the Paris stock exchange and Luxottica shares rose in price by 0.59 percent on the Milan stock exchange. The transaction had been valued at around 46 billion euros when it was first announced in January but, following the rise in share prices for both parties, the valuation has increased by two billion euros.
The French business Essilor, the world’s leading ophthalmic optics specialist, and the Italian business Luxottica, the world’s leading manufacturer of glasses frames, announced their plans to merge and create a new giant in the sector on January 16.
The investment company Exane BNP Paribas believes that the forthcoming authorisation by the European Commission implies that proposed merger will certainly be validated by respective competition directorates of the major countries who have a say without any major conditions being placed on the deal. Several countries have already consented to the deal although authorities in Brazil and Singapore are examining the details thoroughly.
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