With China Approval, Essilor and Luxottica Say Merger Will be Finalized in September
Thursday, July 26, 2018 8:45 AM
CHARENTON-LE-PONT, France and MILAN, Italy—Essilor
(Euronext Paris: EI) and Luxottica
(MTA: LUX) announced today that their planned merger is on track to be finalized at the end of September, rather than this month, as had been expected. The antitrust regulator of the People’s Republic of China, SAMR, has approved the proposed combination between the two companies after they made certain commitments with regard to the conduct of their business in China, Essilor and Luxottica said in a joint statement.
The two companies committed to inform SAMR about their future acquisitions and also to ensure availability of their products and services to all customers in China on a fair basis. “These commitments are fully aligned with the future EssilorLuxottica’s mission to ‘help people see more, be more and live life to its fullest’ and the open business model both companies promote across the globe,” Essilor and Luxottica said, using the combined name they will operate under.
Clearance from Chinese authority was the last condition precedent to the closing of the transaction and paves the way for the combination to be finalized. The two companies said they are progressing with their discussions with the Turkish antitrust authority and expect the closing of the transaction at the end of the third quarter. However, approval from Turkish authorities is not required to close the deal, an Essilor spokesperson told VMail
. The only countries whose approval was legally required by the combination agreement between Essilor and Luxottica were the U.S., the European Union, Canada, Brazil and China.
“Today technically, we can close the deal whenever we want,” the spokesperson said. Essilor CEO Hubert Sagnieres said now that the transaction is certain, preparations for the closing will start.