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China approves Essilor-Luxottica merger

01/08/2018By Matthew Woodley
The last major hurdle in the Essilor-Luxottica merger has been cleared, with China’s antitrust regulator granting conditional approval to the proposed €48 billion (AU$75.8 b) deal.

China’s antitrust regulator, the State Administration for Market Regulation (SAMR), secured several commitments from both companies before sanctioning the deal, which included a promise to inform it about any future acquisitions. SAMR also sought assurances regarding the availability of Essilor-Luxottica products and services to all customers in China on a “fair basis”.

“Clearance from Chinese authority was the last condition precedent to the closing of the transaction and paves the way for the combination to be finalised,” a joint Essilor-Luxottica release stated.

“The two companies are also progressing with their discussions with the Turkish antitrust authority and expect the closing of the transaction at the end of the third quarter.” 

According to Reuters, another condition of SAMR’s approval is that the new entity will not sell its eyewear products at a price lower than costs without a justified reason. The merged company also cannot ban Chinese eyewear sellers from selling their competitors’ products, except for in single-brand and/or franchise stores.

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