1/16/2017, 8:10 AM (Source: TeleTrader)
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Essilor, Luxotica to create €46 billion eyewear titan

An Italian and a French manufacturer of ophthalmic optical equipment agreed to create a joint holding company with two company heads holding equal powers. Luxottica Group SpA's majority owner Delfin Sarl intends to exchange its 62% stake for between 31% and 38% in Essilor International SA, based in Charenton-le-Pont, a suburb of Paris, according to the press release published on Monday. The Ray-Ban maker ended last week's trade in Milan with a market capitalization of €24 billion, compared to the latter's €22 billion.

Leonardo del Vecchio, Luxottica's executive chairman, will also become chief executive and chairman of the new entity with net revenue estimated to top €15 billion, whereas Hubert Sagnieres, head of the French lenses giant, will have the title of deputy CEO and executive vice-chairman. Combined net EBITDA will be €3.5 billion, with revenue and cost synergies from €400 million to €600 million in the medium term, the statement said.

The creation of EssilorLuxottica is expected to be executed in the second half of the year, pending regulatory clearance and shareholder votes.

Breaking the News / IT