Jan 16, 2017
Ray-Ban maker Luxottica joins up with lens manufacturer Essilor in eye-watering £40bn deal
Italian glasses giant Luxottica has agreed an eye-watering £40bn merger deal with Essilor, the world's leading manufacturer of lenses, to create a global behemoth in the eyewear industry.
Luxottica, which owns the Ray-Ban and Oakley brands
and was founded by Leonardo Del Vecchio, Italy's richest man, will join
up with the French lens maker in one of Europe's biggest ever
Mr Del Vecchio, 81, will be the
combined company's largest single shareholder with a stake between 31
and 38pc, although his voting rights will be capped at 31pc.
His Luxottica company has a market value of around £21bn, with Essilor's at around £19bn.
"With this agreement my dream to create a major global player in the eyewear industry… comes finally true," said Mr Del Vecchio.
"Finally… two products which are naturally complementary, namely frames and lenses, will be designed, manufactured and distributed under the same roof."
The two companies will have a combined annual revenue of more than £13bn, they said in a statement, adding that they will employ more than 140,000 employees with sales in more than 150 countries. The merger is expected to deliver cost savings ranging from £350m to £530m "in the medium term".
by Sam Dean