Clearance for Essilor and Luxottica merger in NZ market

Commission grants clearance for Essilor and Luxottica merger in NZ market

The Commerce Commission has granted clearance for Essilor International (Compagnie Générale d’Optique) S.A. and Luxottica Group S.p.A to merge their business activities in New Zealand.

The proposed global merger would bring together a supplier of prescription lenses (Essilor) with a supplier of prescription frames and sunglasses (Luxottica). The parties have sought clearance from a number of regulators in different countries including New Zealand.

In making its decision, the Commission considered the impact on New Zealand markets for the import and supply of unfinished prescription lenses, the wholesale supply of finished prescription lenses and frames, and the retail supply of prescription lenses and frames, contact lenses and non-prescription sunglasses.

Commerce Commission Chairman Dr Mark Berry said the Commission is satisfied the acquisition is unlikely to substantially lessen competition in New Zealand markets.

“Competition is strong and we believe the merged entity will be sufficiently constrained by the presence of existing competitors with the ability to expand at all levels of the supply chain and in all relevant markets.”

A public version of the written reasons for the decision will be available on the Clearances Register in due course.

Background
Essilor
Essilor is a global manufacturer and wholesale supplier of ophthalmic lenses. In New Zealand, Essilor is principally active in the wholesale supply of finished prescription lenses to optical retailers. Essilor is also active in the retail market to a limited extent via its online store: clearly.co.nz.

Luxottica
Luxottica is a global manufacturer and wholesale supplier of prescription frames and sunglasses. In New Zealand, Luxottica’s activities are limited to the wholesale supply of prescription frames and sunglasses, and the retail of optical products and services (via its OPSM, Sunglass Hut, and Oakley stores).

Merger requirements
A fact sheet explaining how the Commission assesses a merger application is available on our website.

ENDS

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