On August 1, 2018, the merger agreement between Essilor and Luxottica was finally completed, after a long period of negotiations and discussions. The two companies, both leaders in the eyewear industry, decided to join forces in order to create an even stronger and more competitive entity.
Essilor is a French company that has been manufacturing lenses for eyeglasses and sunglasses since 1849. It is well known for its high-quality products and innovative technologies that allow for better vision and eye health. Luxottica, on the other hand, is an Italian company that designs and produces eyewear frames and sunglasses. It has a portfolio of well-known brands such as Ray-Ban, Oakley, and Persol, among others.
The merger between Essilor and Luxottica has been in the works since January 2017, but it faced several hurdles, including regulatory issues and power struggles between the two companies. The final agreement was reached in November 2018, with Essilor`s CEO, Hubert Sagnières, becoming the executive chairman of the new entity, EssilorLuxottica.
The merger is expected to bring significant benefits to both companies, as well as to their customers and shareholders. By combining their strengths and resources, EssilorLuxottica will be able to offer a wider range of products and services, as well as to achieve greater cost efficiencies. The new entity is also expected to have a stronger presence in key markets such as the US, Europe, and China.
However, the merger has also raised concerns among some industry experts, who worry about the potential for a monopoly in the eyewear industry. EssilorLuxottica will have significant control over various aspects of the eyewear market, from manufacturing to designing to retailing. This could lead to higher prices and reduced competition, which may ultimately harm consumers.
Despite these concerns, EssilorLuxottica is moving forward with its plans for growth and expansion. The company has already announced its intentions to acquire GrandVision, a Dutch eyewear retailer, and to launch a new line of smart glasses in partnership with Google.
In conclusion, the EssilorLuxottica merger agreement is a significant development in the eyewear industry, with the potential for both positive and negative effects on customers, industry players, and the market as a whole. It remains to be seen how the new entity will operate in practice, and whether it will fulfill its promise of delivering better products and services to consumers while maintaining fair competition.