By Foo Yun Chee
By Foo Yun Chee
BRUSSELS, March 23 (Reuters) – Ray-Ban maker EssilorLuxottica ESLX.PA secured EU antitrust approval on Tuesday for its 7.2 billion euro ($8.5 billion) acquisition of GrandVision GVNV.AS after pledging to promote greater than 300 shops in three nations to handle competitors issues.
Shaped in 2018 from the merger of French lens producer Essilor and Italian eyewear maker Luxottica, EssilorLuxottica additionally makes eyewear for luxurious manufacturers reminiscent of Chanel, Prada and Versace.
The corporate is at loggerheads with Dutch retail chain GrandVision over the latter’s administration of the coronavirus disaster, with litigation at the moment earlier than a Dutch court docket.
The European Fee mentioned EssilorLuxottica pledged to promote a complete of 351 shops in Italy, the Netherlands and Belgium to allay issues that the deal could lead to worth hikes for body retailers and cut back competitors.
In Belgium, the GrandOptical chain of 35 shops shall be bought with out the model identify, whereas in Italy a complete of 174 shops, which incorporates EssilorLuxottica’s VistaSi chain and 72 GrandVision shops shall be placed on the block.
Within the Netherlands, 142 shops from the EyeWish chain shall be divested.
The EU competitors enforcer mentioned the asset gross sales would restrict the retail footprint of the merged entity and cut back its incentive to limit rivals’ entry to optical frames in Belgium, Italy and the Netherlands, whereas creating or boosting a rival.
($1 = 0.8422 euros)
(Reporting by Foo Yun Chee; Modifying by Emelia Sithole-Matarise)
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