Luxottica has filed for the big merger ...............................

[Chris Ryser]

Form 425 LUXOTTICA GROUP SPA Filed by: LUXOTTICA GROUP SPA

March 3, 2017 3:00 PM EST

Filing By Luxottica Group S.p.A. pursuant to Rule 425 under the Securities Act of 1933, as amended and deemed filed pursuant to Rule 14d-9 under the Securities Exchange Act of 1934, as amended

Subject Company: Luxottica Group S.p.A.
CommissionFile No.: 001-10421


This Transcript may contain forward-looking statements. Such forward-looking statements are inherently uncertain and are subject to a variety of significant business, economic and competitive risks, many of which Luxottica may be unaware of or unable to control. Such factors may cause Luxottica’s actual results, performance or plans with respect to the proposed combined Essilor International and Luxottica group to differ materially from any future results,performance or plans expressed or implied by such forward-looking statements. Forward-looking statements are not guarantees of future performance.


Set forth below are excerpts from Luxottica Group S.p.A.’s conference call to review the fourth quarter and full year financial results held on March 2, 2017, which excerpts relate to the proposed combination of Luxottica and Essilor International announced on January 16, 2017:

EXCERPT 1:

Massimo Vian — Luxottica Group — CEO for Product and Operations

…. So, where will Luxottica be tomorrow? We’ll be building the eyewear company of the future, either on our own or, or much better, as a combined entity…But, as a combined entity, we will strengthen the offer for eyecare professionals and end consumers, in other words coupling brand management with eyecare, thus, adding a crucial pillar to our business model to complete the vertical integration. Over €16 billion in sales for the combined entity, if we put together 2016 sales for Luxottica and Essilor. This is of course the direction we’re heading in. The combination will allow us to put our foot on the gas and accelerate our vision of producing the complete pair of frames and lenses together with the most perfect fit and the shortest delivery time to better serve our wholesale customers and our end consumers.

This can be a game changer for consumers that have been hungry for excellence and innovation.

See all of it: ========è
https://www.streetinsider.com/SEC+Fi.../12628447.html

[drk]

"…. So, where will Luxottica be tomorrow? We’ll be building the eyewear company of the future, either on our own or, or much better, as a combined entity…But, as a combined entity, we will strengthen the offer for eyecare professionals and end consumers, in other words coupling brand management with eyecare, thus, adding a crucial pillar to our business model to complete the vertical integration. Over €16 billion in sales for the combined entity, if we put together 2016 sales for Luxottica and Essilor. This is of course the direction we’re heading in. The combination will allow us to put our foot on the gas and accelerate our vision of producing the complete pair of frames and lenses together with the most perfect fit and the shortest delivery time to better serve our wholesale customers and our end consumers.

This can be a game changer for consumers that have been hungry for excellence and innovation"

I'd like to punch the 25-year-old-brained Massimo who wrote that in the face.

Chris, do you understand the process in the U.S.? What if it isn't approved here?

[drk]

I'm having a hard time understanding the ramifications of this merger.

Obviously it makes a huge multi-national corporation. Whatevs.

I don't see how 1 + 1 = 3, here.

Sure, on the retail end, I can see how it would put pressure on competitors in the third-party arena, namely VSP (who look small potatoes, in comparison, but hey, it's a small potatoes industry). I can see how Essilux would be able, through EyeMed, to undersell VSP in the vision care arena. I think it would work this way:

1. VSP has to purchase semi-finshed PALs (and to a lesser extent photochomic and polarized) lenses since they don't manufacture them, and in most cases they have to PURCHASE THEM FROM THEIR DIRECT COMPETITION!

But VSP's come back would be simply to remove Essilux products from their formulary. They can substitute any number of products for much of this.

I guess Essilux could expect their direct-to-consumer/direct-to-prescriber marketing "brand power" (Varilux, Crizal, Transitions) to put pressure on VSP to provide it, or be seen in the marketplace as having only "me-too" vision care, but I doubt that, sincerely.

2. I guess VSP can disallow Luxottica frames and allow only their Marchon/Altair brands, but man, that'd be difficult for everyone. Nuclear option, there, but feasible.

So, in sum, VSP is going to bleed, and maybe at a slightly greater pace than they already are. But they always can be vertical themselves, if they have the guts and capital for it. They probably do not.

In the U.S. non-managed-vision-care market, I guess the merger makes some sense...If someone walks into Luxottica, they are now guaranteed Essilor lenses. Win for Essilor. And likewise Lux gets preferential treatment (not like they weren't)?

But VSP is a small fry in the world-wide markets. What does Essilor and Luxottica get from combining in the rest of the world? Can anyone explain that?

[Chris Ryser]

I'd like to punch the 25-year-old-brained Massimo who wrote that in the face.

Chris, do you understand the process in the U.S.? What if it isn't approved here?

First step .....................Filing

Filing By Luxottica Group S.p.A. pursuant to Rule 425 under the Securities Act of 1933, as amended and deemed filed pursuant to Rule 14d-9 under the Securities Exchange Act of 1934, as amended

Subject Company: Luxottica Group S.p.A.
CommissionFile No.: 001-10421

...................next step

There will be two options for the government, accept or reject.

If accepted you will face near total domination of your supply chain, by one corporation that has some of the best quality products on the market. It has all the brain power it needs, and can get more anytime, if needed.

It has all the setups needed to fully function from day one the merger permits will be issued and are valid, from manufacturing to wholesale as well as retail and online, which translates into 100% of all optical business levels in the USA, as well as elsewhere.

.........if refused you will continue with the status quo, and changes will still happen , but at much a slower pace.

[Speed]

Form 425 LUXOTTICA GROUP SPA Filed by: LUXOTTICA GROUP SPA

March 3, 2017 3:00 PM EST

Filing By Luxottica Group S.p.A. pursuant to Rule 425 under the Securities Act of 1933, as amended and deemed filed pursuant to Rule 14d-9 under the Securities Exchange Act of 1934, as amended

Subject Company: Luxottica Group S.p.A.
CommissionFile No.: 001-10421


This Transcript may contain forward-looking statements. Such forward-looking statements are inherently uncertain and are subject to a variety of significant business, economic and competitive risks, many of which Luxottica may be unaware of or unable to control. Such factors may cause Luxottica’s actual results, performance or plans with respect to the proposed combined Essilor International and Luxottica group to differ materially from any future results,performance or plans expressed or implied by such forward-looking statements. Forward-looking statements are not guarantees of future performance.


Set forth below are excerpts from Luxottica Group S.p.A.’s conference call to review the fourth quarter and full year financial results held on March 2, 2017, which excerpts relate to the proposed combination of Luxottica and Essilor International announced on January 16, 2017:

EXCERPT 1:

Massimo Vian — Luxottica Group — CEO for Product and Operations

…. So, where will Luxottica be tomorrow? We’ll be building the eyewear company of the future, either on our own or, or much better, as a combined entity…But, as a combined entity, we will strengthen the offer for eyecare professionals and end consumers, in other words coupling brand management with eyecare, thus, adding a crucial pillar to our business model to complete the vertical integration. Over €16 billion in sales for the combined entity, if we put together 2016 sales for Luxottica and Essilor. This is of course the direction we’re heading in. The combination will allow us to put our foot on the gas and accelerate our vision of producing the complete pair of frames and lenses together with the most perfect fit and the shortest delivery time to better serve our wholesale customers and our end consumers.

This can be a game changer for consumers that have been hungry for excellence and innovation as well as much, much higher prices.

See all of it: ========è
https://www.streetinsider.com/SEC+Fi.../12628447.html

Need a bit of work.