By Giulia Petroni 
 

EssilorLuxottica SA late Monday said it is reviewing its options for the acquisition of GrandVision NV after an arbitration ruling gave the eyewear company the possibility to end the deal.

"The arbitral tribunal ruled that EssilorLuxottica has the option to terminate the acquisition of GrandVision due to GrandVision's material breaches of its obligations to EssilorLuxottica," the Franco-Italian company said.

Under the terms of the deal, EssilorLuxottica was liable for a termination fee of 400 million euros ($475.7 million).

The company, which last year agreed to acquire the Dutch optical retailer, had filed proceedings before a district court in Rotterdam, the Netherlands, to receive information about GrandVision's handling of its business during the coronavirus pandemic, and to assess the extent to which it may have breached its obligations under a support agreement between the two parties.

EssilorLuxottica said it will communicate its decision in relation to the transaction in due course.

GrandVision said Monday that it is disappointed by the ruling and that further announcements will be made "if and when required."

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

June 22, 2021 02:02 ET (06:02 GMT)