Merger of Luxottica and Essilor

On January 16, Luxottica (the world's largest Italy-based eyewear company that owns Ray-Ban, Oakley, and Sunglass Hut) and Essilor (a French company that produces ophthalmic lenses along with ophthalmic optical equipment) stated that they have agreed a 46-billion-euro ($49 billion) merger deal for creating a global powerhouse in the eyewear industry with revenues of more than 15 billion euros. This deal is one of Europe’s largest cross-border tie-ups.

Under the terms of the merger, Leonardo Del Vecchio, the founder and chairman of Luxottica and Italy’s richest man, will take a stake of between 31% and 38% in the merged group through his family holding Delfin, thus becoming the biggest shareholder in the company. Delfin will contribute its 62% stake in Luxottica at a ratio of one share in the Italian group for every 0.461 Essilor shares. Essilor, in turn, will launch a mandatory exchange offer on all remaining Luxottica shares, at the same ratio, with the aim of delisting Luxottica’s shares.

The merged company will be called EssilorLuxottica and will be listed in Paris.

The founder and chairman of Luxottica Del Vecchio will be the chief executive officer (CEO) and executive chairman and the chairman and CEO of Essilor Hubert Sagnières will be executive vice-chairman and deputy CEO of the merged company with the same powers as the chairman and CEO.

Essilor was advised by Citi and Rothschild, while Luxottica was advised by Mediobanca.