|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||117.90 - 119.45|
|52-week range||95.50 - 129.55|
|Beta (3Y monthly)||0.58|
|PE ratio (TTM)||29.02|
|Earnings date||31 Jul 2019|
|Forward dividend & yield||2.04 (1.75%)|
|1y target est||124.83|
(Bloomberg Opinion) -- The $53 billion eyewear merger of France’s Essilor and Italy’s Luxottica was a tie-up that screamed strategic logic. But it’s been thrown off course by issues beyond its industrial merits.The same danger applies to attempts by the combined company, EssilorLuxottica SA, to acquire GrandVision NV, a European optical retailer whose stores include Vision Express.To recap: Back in January 2017, the lens-maker Essilor and the frame designer Luxottica agreed to merge. Combining lenses and frames made sense. It would create more firepower for research and development, pivot the group toward more expensive prescription lenses and defend it against the twin threat of online rivals and luxury companies seeking to make more of their own branded eyewear rather than letting other firms do it for them.Unfortunately, the deal’s strategic benefits have been overshadowed by a bitter falling out between the billionaire Luxottica founder Leonardo Del Vecchio and Essilor’s boss Hubert Sagnieres, which led at one point to the threat of arbitration from Del Vecchio over alleged violations of the merger agreement.The two men have since reached a fragile truce and are looking for a single CEO to better manage their differences. But given the context of their previous rancor, the new takeover talks with GrandVision’s controlling shareholder HAL to buy its 77% stake in the group look bold.As with the first merger, the industrial logic is there. The Dutch target would add a significant optical retail presence in Europe, something that EssilorLuxottica lacks. Yet this offer has come much earlier than expected. While analysts at Bernstein speculated recently that an approach like this could be on the cards, they suggested it might be three to five years away.Essilor and Luxottica only completed their merger in October, so the integration process is just getting started. With GrandVision they would have to incorporate another large business. At 28 euros per share, the price being discussed, GrandVision would be valued at 7.1 billion euros ($8 billion). That’s just 14% of EssilorLuxottica’s market capitalization but it’s far from insignificant, especially given how much work still needs to be done on the original merger.GrandVision would further complicate the assimilation and could be another management distraction, particularly if there are competition issues to be dealt with (EssilorLuxottica already has a very dominant position in eyewear). As part of the truce, the Franco-Italian company has handed operational control to Francesco Milleri from the Luxottica side and Laurent Vacherot from the Essilor camp, while they look for a single CEO. Still, given the animosity earlier in the year, there’s no guarantee the peace will last. It’s been hard for Del Vecchio, who owns 32% of the combined group, to relinquish his grip. Should the GrandVision deal go ahead, EssilorLuxottica’s combination would become a double bet. The first is that the original merger will fulfill its strategic potential and deliver the promised yearly savings of up to 600 million euros. The second wager is that EssilorLuxottica can digest GrandVision while doing all of this. Given the peculiarities of this situation, and the personalities involved, both have long odds.To contact the author of this story: Andrea Felsted at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
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Disclosure of Share Capital and Voting Rights Outstanding as of May 31, 2019(Pursuant to Article L.233-8 II of the French Commercial Code and articles 221-1 and 223-16 of the General Regulations of the Autorité des Marchés Financiers)Charenton-le-Pont, France (June 5, 2019 - 6:00 pm) \- As of May 31, 2019, shares and voting rights outstanding of EssilorLuxottica, the global leader in the design, manufacture and distribution of ophthalmic lenses, frames and sunglasses, breaks down as indicated below. May 31, 2019 Shares outstanding 436,070,6651 Number of real voting rights (excluding treasury shares) 434,970,908 Theoretical number of voting rights (including treasury shares) 436,070,665 It is to be noted that voting rights are capped at 31%, applicable to any shareholder, in accordance with a formula contained in article 23 of EssilorLuxottica’s by-laws2.For further information, please consult the Prospectus which received Visa No. 18-460 from the AMF on September 28, 2018 and its Securities Note Supplement which received Visa No. 18-494 from the AMF on October 23, 2018, available on the website www.essilorluxottica.com.EssilorLuxottica is a global leader in the design, manufacture and distribution of ophthalmic lenses, frames and sunglasses. Formed in 2018, its mission is to help people around the world to see more, be more and live life to its fullest by addressing their evolving vision needs and personal style aspirations. The Company brings together the complementary expertise of two industry pioneers, one in advanced lens technology and the other in the craftsmanship of iconic eyewear, to set new industry standards for vision care and the consumer experience around it. Influential eyewear brands including Ray-Ban and Oakley, lens technology brands including Varilux® and Transitions®, and world-class retail brands including Sunglass Hut and LensCrafters are part of the EssilorLuxottica family. In 2018, EssilorLuxottica had nearly 150,000 employees and pro forma consolidated revenues of Euro 16.2 billion. The EssilorLuxottica share trades on the Euronext Paris market and is included in the Euro Stoxx 50 and CAC 40 indices. Codes and symbols: ISIN: FR0000121667; Reuters: ESLX.PA; Bloomberg: EL:FP. CONTACTSEssilorLuxottica Investor Relations (Charenton-le-Pont) Tel: + 33 1 49 77 42 16 (Milan) Tel: + 39 (02) 8633 4870 E-mail: email@example.com EssilorLuxottica Corporate Communications (Charenton-le-Pont) Tel: + 33 1 49 77 45 02 (Milan) Tel: + 39 (02) 8633 4470 E-mail: firstname.lastname@example.org * * * 1 Including 365 shares delivered but not yet registered. 2 EssilorLuxottica’s by-laws are available on the Company’s website under the section Governance / Publications or by clicking here. Attachment * DOWNLOAD PDF VERSION OF THE NEWS RELEASE
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EssilorLuxottica declared an end to a feud between its French and Italian partners on Monday, saying it would drop all legal proceedings and focus on integrating the eyewear group formed by last year's 54 billion euro ($61 billion) merger. The company, which brings together Ray-Ban maker Luxottica and lenses specialist Essilor, also reaffirmed its ambition to find a new chief executive by the end of 2020. Shares in EssilorLuxottica, which have been rattled as the dispute was fought out in public, were up 0.27 percent at 1422 GMT, among the rare gainers on the Paris benchmark CAC-40 index, which was down 1.4 percent.
On Monday, the maker of Ray-Ban and Oakley sunglasses outlined a fresh leadership revamp to end the hostilities between chairman and dominant shareholder Leonardo del Vecchio and his deputy. The overhaul still fails to address the flaws in the company’s governance – and has regrettably divided the minority shareholders who have been pressing for a long-term resolution to the conflict. EssilorLuxottica was created out of the October merger of Essilor, a Paris-based lense maker, and Luxottica, the maker of frames controlled by Del Vecchio.
Eyewear group EssilorLuxottica's feuding French and Italian partners are close to signing a peace deal to end a boardroom dispute over the group's leadership that threatened to pull it apart, France's Les Echos business daily reported on Sunday. Citing two unnamed sources familiar with the matter, Les Echos said the agreement could be signed later on Sunday evening. A spokeswoman for EssilorLuxottica declined to comment.
EssilorLuxottica kept its full-year outlook unchanged on Tuesday after posting upbeat first-quarter sales, although some concerns remain among investors over the future of governance at the world's largest eyewear manufacturer. EssilorLuxottica was formed last October after the merger of French lenses specialist Essilor and Italian spectacles maker Luxottica, creating the world's largest eyewear maker in a 54 billion euro deal. Presented two years ago as a logic fit and merger of equals, the EssilorLuxottica deal derailed shortly in a management crisis at the very top of the new holding company, with both sides accusing each other of trying to secure leadership.
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Valoptec International which represents employees and former employees of Ray Ban maker EssilorLuxottica has proposed the appointment of an additional independent director to the group's board in a bid to resolve governance issues. Valoptec said in a statement it had submitted a draft resolution for a May 16 EssilorLuxottica shareholders meeting, to appoint British national Peter James Montagnon as independent director.
French-Italian eyewear group EssilorLuxottica has hired two headhunters to search for a new chief executive officer in a bid to cool a conflict between its French and Italian partners over leadership of the company. EssilorLuxottica, which resulted from the merger of French lenses maker Essilor and Italian frame manufacturer Luxottica last October, is being torn apart as the two groups, who were supposed to have equal weighting in the combined company's leadership, accuse each other of trying to dominate. Tensions became apparent last November, when Luxottica's founder Leonardo Del Vecchio, who is the chairman of the merged entity, appeared to tap his right-hand man, Francesco Milleri, for the chief executive's role, irking the French side.
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PARIS/MILAN (Reuters) - A row over who is in charge at Ray-Ban maker EssilorLuxottica could drag on for two years or more after the recently merged group's executive chairman filed an arbitration request after alleged violations of a power-sharing agreement. French lenses producer Essilor and Italian frame manufacturer Luxottica merged last October, creating the world's largest eyewear maker in a 54 billion euro ($61 billion) deal. EssilorLuxottica's shares fell 2.7 percent by 1510 GMT on Thursday after the holding of Luxottica's founder Leonardo Del Vecchio said it had filed an arbitration request with the Paris-based International Chamber of Commerce.
You don’t need to be a McKinsey partner to know that when you have “too many cooks” you might burn down the kitchen. It’s a pity, then, that France’s Essilor and Italy’s Luxottica didn’t think about that before agreeing a $53 billion eyewear merger in 2017. In a delicious irony, McKinsey is advising the joint company, EssilorLuxottica SA, on its post-merger integration.
MILAN/PARIS (Reuters) - The top shareholder and executive chairman of EssilorLuxottica has filed an arbitration request to verify alleged violations of a merger agreement between the Italian and French groups, further escalating a spat over power sharing. Essilor and Luxottica merged last October, creating the world's largest eyewear maker in a 54 billion euro ($61.73 billion) deal. Delfin, the holding of Luxottica's founder Leonardo Del Vecchio, said in a statement the arbitration request was filed with the International Chamber of Commerce.
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Tensions at the top of glasses company EssilorLuxottica burst into the open on Thursday when the group's Italian executive chairman and its French vice chairman accused each other of plotting to take control of the combined group. France's Essilor and Italy's Luxottica merged last October, creating the world's largest eyewear maker in a 54 billion euro (46.9 billion pounds) deal. The two groups were supposed to have equal weighting in the leadership of the combined company but they now accuse each other of trying to gain the upper hand, the latest example of squabbles between France and Italy over business partnerships .