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Essilor-Luxottica merger gets Australian go-ahead

01/11/2017By Matthew Woodley • Staff Journalist
The Australian Competition and Consumer Commission (ACCC) has decided to not oppose the proposed merger between Essilor and Luxottica, citing minimal direct competitive overlap between the two parties.

Australia’s so-called consumer watchdog had been investigating the proposed deal since August and had already extended the deliberation process by a week before releasing its findings. ACCC commissioner Mr Roger Featherston said as the two companies mostly supply products and different stages of the supply chain, the investigation had focused on vertical integration and what affect it could potentially have one competition.


“The ACCC’s investigation found that a merged Essilor-Luxottica would likely continue to face competition at every level of the supply chain, including from other vertically integrated suppliers.”
Roger Featherston, ACCC commissioner

“The ACCC spoke to a range of interested parties including customers, competitors, buying groups and industry associations. The feedback from market participants was mixed, with some expressing concern while others expressed no concerns about the proposed merger,” Featherston said.  

“While Luxottica does supply market leading branded frames and sunglasses, retailers have generally indicated that there are alternative suppliers of frames and sunglasses that they could switch to if they did not wish to purchase from the combined Essilor-Luxottica. There are also other options for lenses.”

The ACCC also considered whether the combined entity could hinder competition by tying or bundling its supply of frames and lenses to independent retailers. However, it concluded that any attempt to bundle the supply of these brands with the supply of lenses would be unlikely to substantially lessen competition.

“The ACCC’s investigation found that a merged Essilor-Luxottica would likely continue to face competition at every level of the supply chain, including from other vertically integrated suppliers,” Featherston said.  

In Australia, Essilor’s main activities are at the wholesale level, while Luxottica largely supplies wholesale prescription frames and sunglasses. Luxottica-owned brands include Ray-Ban, Oakley and Prada, while it also has retail outlets OPSM, Laubman & Pank and Sunglass Hut.

More information: ACCC public register.

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