Tags: luxottica | essilor | deal | investigate | eu

EU to Investigate $54 Billion Luxottica, Essilor Deal

EU to Investigate $54 Billion Luxottica, Essilor Deal
(Dollar Photo Club)
 

Tuesday, 26 September 2017 12:34 PM

EU antitrust regulators will investigate whether the proposed 46-billion-euro ($54 billion) merger of Italian eyewear maker Luxottica and French lenses maker Essilor will push up prices and drive out rivals from the market.

The European Commission opened a full-scale investigation on Tuesday, saying the deal involving the two companies, both top-ranked in their sectors, may reduce competition in ophthalmic lenses and eyewear.

The move came after the companies declined to offer concessions in a preliminary review. Reuters reported on Sept. 11 that the competition enforcer had expressed worries about the deal to the companies.

Luxottica shares fell 1.4 percent to 46.86 euros in late trading, while Essilor's declined 1.3 percent to 103.35 euros.

European Competition Commissioner Margrethe Vestager said the deal could affect a huge number of people.

"Half of Europeans wear glasses and almost all of us will need vision correction one day. Therefore we need to carefully assess whether the proposed merger would lead to higher prices or reduced choices for opticians and ultimately consumers," she said.

Key concerns include the possibility that the merged company may persuade opticians to buy eyewear and lenses as a package and exclude rival eyewear suppliers competing for ophthalmic lenses.

The Commission will decide by Feb. 12 whether to clear the deal. Luxottica owns brands including Ray-Ban and Oakley. Essilor competes with Hoya, Carl Zeiss and Bausch & Lomb.

© 2018 Thomson/Reuters. All rights reserved.

   
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EU antitrust regulators will investigate whether the proposed 46-billion-euro ($54 billion) merger of Italian eyewear maker Luxottica and French lenses maker Essilor will push up prices and drive out rivals from the market.
luxottica, essilor, deal, investigate, eu
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2017-34-26
Tuesday, 26 September 2017 12:34 PM
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