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Statement of Preliminary Issues released for Essilor/Luxottica

2 August 2017

The Commerce Commission has published a statement of preliminary issues relating to the proposed global merger of Essilor International (Compagnie Générale d’Optique) S.A. and Luxottica Group S.p.A.

The statement outlines the main issues that the Commission considers important in deciding whether or not to grant clearance to the proposed merger. A copy can be found on the Commission’s Clearances Register.

The Commission invites interested parties to provide comments on the likely competitive effects of the merger of Essilor and Luxottica. Submissions can be sent by email to registrar@comcom.govt.nz with the reference Essilor/Luxottica in the subject line. Any submissions should be received by close of business on Thursday 16 August 2017.

The Commission has also updated its Clearances Register to publish a public version of the application received from Essilor and Luxottica.

The Commission is currently scheduled to make a decision on the application by 6 September 2017. However, this date may change as our investigation progresses. In particular, if we need to test and consider the issues identified further, the decision date is likely to extend.

Background

Essilor is a global manufacturer and wholesale supplier of ophthalmic lenses. In New Zealand, Essilor is principally active in the wholesale supply of finished prescription lenses to optical retailers, although Essilor is also active in the retail market to a limited extent via its online store: clearly.co.nz.

Luxottica is a global manufacturer and wholesale supplier of prescription frames and sunglasses. In New Zealand, Luxottica’s activities are limited to the wholesale supply of prescription frames and sunglasses, and the retail of optical products and services (via its OPSM, Sunglass Hut and Oakley stores).

The proposed merger brings together a supplier of prescription lenses (Essilor) with a supplier of prescription frames and sunglasses (Luxottica).

When considering a proposed merger, the Commission must determine whether the competition that would be lost with the merger would be substantial.

We will give clearance to a proposed merger only if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.

A fact sheet explaining how the Commission assesses a merger application is available on the clearances page.