Italian glass manufacturer Luxottica, known for brands like Ray-Ban and Oakley, will merge with French lens manufacturer Essilor to create a company with a market value that approaches 50 billion euro.
15 billion euro turnover
Combined, the two companies have an annual 15 billion euro turnover and employ nearly 140,000 people. Luxxotica's founder and CEO, Leonardo Del Vechhio, will become the merger company's major shareholder through his investment company Delfin, with 31 % of all shares. He will also take charge of the merger company, while Essilor CEO Hubert Sagnières will become the company's number 2, even though he will have as much to say in the company as the CEO. The managerial positions have also been evenly spread across both companies.
Thanks to the merger, Luxottica and Essilor hope to save up between 400 to 600 million euro in the long-term.
The acquisition will be executed in shares, with Luxottica shares exchanged for Essilor shares. Luxottica will also be removed from the Milan stock exchange, because EssilorLuxottica will be traded on the Paris stock exchange instead.