News of a merger deal between Luxottica and Essilor valued at approximately AU$65 billion is expected to be confirmed overnight.
According to news released by Reuters, the deal is one of Europe’s largest cross-border tie-ups bringing together the Italian eyewear manufacturer Luxottica (valued at almost AU$34 billion) with French ophthalmic lens manufacturer Essilor, (valued at over AU$31 billion). The combined market capitalisation is almost AU$65 billion.
The two companies’ combined revenues totalled nearly AU$23 billion in 2015 and together they employed some 140,000 people.
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The two companies’ combined revenues totalled nearly AU$23 billion in 2015 and together they employed some 140,000 people
A merger between Luxottica and Essilor has been rumoured for some time however it was squashed in May 2016 when Luxottica’s Chief Executive Massimo Vian issued a statement (published at mivision.com.au) to shareholders denying any plans to do so. “As of today there are no discussions with France’s Essilor or Germany’s Zeiss over possible tie-ups… both companies are Luxottica’s suppliers and that is the only relationship we have with them”.
However the statement informed that Luxottica had commenced construction on three new laboratories for the production of ophthalmic lenses within the Group’s main distribution centres, which would allow it to integrate lenses and frames at the right phase of the cycle, optimising the level of service for its optical retail brands.
The fast-growing eyewear market was valued at around $100 billion in 2015, according to U.S.-based market consulting company Grand View Research. It is expected to keep expanding at a healthy pace in coming years because of an aging population as well as increasing awareness about eye care and vision problems, with Latin America and Asia seen as key markets for growth.
