The Commerce Commission gave its OK.
(Press Release) The Commerce Commission has granted clearance for Essilor International S.A. and Luxottica Group S.p.A to merge their business activities in New Zealand.
The proposed global merger would bring together a supplier of prescription lenses (Essilor) with a supplier of prescription frames and sunglasses (Luxottica). The parties have sought clearance from a number of regulators in different countries including New Zealand.
In making its decision, the Commission considered the impact on New Zealand markets for the import and supply of unfinished prescription lenses, the wholesale supply of finished prescription lenses and frames, and the retail supply of prescription lenses and frames, contact lenses and non-prescription sunglasses.
Commerce Commission Chairman Dr. Mark Berry said the Commission is satisfied the acquisition is unlikely to substantially lessen competition in New Zealand markets.
“Competition is strong and we believe the merged entity will be sufficiently constrained by the presence of existing competitors with the ability to expand at all levels of the supply chain and in all relevant markets,” Berry said.
A public version of the written reasons for the decision will be available on the Clearances Register in due course.