Things aren’t going so well at EssilorLuxottica SA, the company created by the merger of Essilor International and Luxottica Group, Bloomberg reports.
The organization is plagued by infighting among its leadership. Its share price is down 22 percent since the October merger, Bloomberg notes.
Luxottica founder Leonardo Del Vecchio says Essilor’s leaders aren’t sticking to the agreed-upon terms of corporate governance, according to Bloomberg. He’s the combined company’s largest shareholder and serves as its executive chairman.
Meanwhile, Essilor’s Hubert Sagnieres, who serves as vice chairman of the merged organization, says Del Vecchio has staged a “de facto attempt to take control of the new group.” He claims Del Vecchio has made false accusations as to the group’s governance and management.
Del Vecchio previously told Le Figaro, a French newspaper, that Sagnieres failed to communicate with him on matters such as filling key management jobs.
“He has acted as if Essilor bought Luxottica,” Del Vecchio was quoted saying.
The companies completed their merger in October.
Following the contribution by Delfin, at the time the majority shareholder of Luxottica, of its 62.42 percent stake in Luxottica to Essilor on Oct. 1, Essilor became the parent company of Luxottica and was renamed EssilorLuxottica.
Read more at Bloomberg