Interesting Bloomberg Article on the big merger published today at 4.06 am



When Luxottica Group Spa and Essilor International SA announced a 45 billion euro ($53 billion) merger in January,executives seemed relaxed about antitrust risks. While the two companies are leaders in their respective fields, their eyewear activities are largely complementary. Essilor makes ophthalmic lenses; Luxottica sells frames and sunglasses, including Ray-Ban, Oakley and Persol.

Yet last month the European Commission Announced an in-depth review of the Franco-Italian deal, citing competition concerns. U.S.regulators are investigating too. So is there really nothing to look at here?



Combining Luxottica -- chaired by billionaire founder Leonardo Del Vecchio -- and Essilor would create a leviathan with 16 billion euros of sales and enormous power over every stage of producing and selling spectacles and sunglasses. Doubtless that’s good for investors: The deal is meant to generate up to 600 million euros of yearly synergies, in part through cross-selling. That implies billions of euros of value creation.

But rival lens suppliers and optometrists should be worried, especially in North America,which will account for half the merged entity's sales.





See all of it:

Luxottica's $53 Billion Deal Looks a Little Cracked

https://www.bloomberg.com/gadfly/art...little-cracked