EU Opens Investigation Into Essilor-Luxottica Merger
26 Settembre 2017 - 7:05PM
Dow Jones News
By Emre Peker
BRUSSELS -- The European Union's antitrust authority said
Tuesday it started an investigation into the proposed merger
between Ray-Ban maker Luxottica Group SpA and optical-lens maker
Essilor International SA, which would create a global eyewear
colossus.
The deal -- announced in January and poised to forge a firm with
a combined market value of around EUR46.3 billion ($54.5 billion)
-- threatens to exclude other lens suppliers from markets,
according to the EU's executive arm, the European Commission.
Essilor is the largest supplier of ophthalmic lenses while
Luxottica is the top provider of eyewear both in Europe and across
the world, the EU said. The bloc's competition authority said it is
concerned that their combination could result in bundling or tying
practices that harm rivals.
"The merged entity may use Luxottica's powerful brands to
convince opticians to buy Essilor lenses and exclude other lens
suppliers from the markets," the EU said.
EU officials have 90 working days to reach a decision, which
sets a Feb. 12 deadline for the review. The authorities said their
probe "does not prejudge the outcome."
"We need to carefully assess whether the proposed merger would
lead to higher prices or reduced choices for opticians and
ultimately consumers, " European Competition Commissioner Margrethe
Vestager.
France-based Essilor and Luxottica of Italy would merge in a
complex share swap, which would remove the risk of stepping on each
other's toes as Luxottica expanded into lens manufacturing and
Essilor moved into frames.
The combined companies will dominate the global eyewear market,
putting them far ahead of other competitors, such as Johnson &
Johnson Inc. and Safilo Group SpA, according to Euromonitor.
Write to Emre Peker at emre.peker@wsj.com
(END) Dow Jones Newswires
September 26, 2017 12:50 ET (16:50 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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