The Combination Agreement EssilorLuxottica: A Game-Changer in the Eyewear Industry

The eyewear industry has been experiencing a lot of changes in recent years, with technological advancements and changing consumer preferences influencing the way the industry operates. One of the biggest changes that happened in the industry is the merger of Essilor and Luxottica, two giants in the eyewear market. The merger was announced in 2017, and the Combination Agreement EssilorLuxottica was signed in 2018, bringing together two of the biggest players in the industry.

The merger was a game-changer in the eyewear industry, and it has the potential to reshape the industry landscape. Essilor is a French company that specializes in the production of ophthalmic lenses, while Luxottica is an Italian company that produces frames and sunglasses. By merging, the two companies have created a vertically integrated business model that covers the entire value chain in the eyewear industry.

The combination agreement outlines the terms of the merger, which includes the creation of a new company called EssilorLuxottica. The new company is headquartered in Paris and is led by two CEOs, one from Essilor and the other from Luxottica. The agreement also states that the new company will be listed on the Paris Stock Exchange, and it will have a dual listing on the Milan Stock Exchange.

One of the main benefits of the merger is the creation of a company that has a greater ability to innovate and develop new products. By having a vertically integrated business model, EssilorLuxottica can bring new products to market faster and more efficiently. The company will also have a greater ability to control its supply chain, which will enable it to better manage costs and quality.

Another benefit of the merger is the potential for cost savings. By bringing together two companies that operate in the same industry, EssilorLuxottica can streamline its operations, eliminating redundancies and reducing costs. The company can also leverage its increased size and scale to negotiate better terms with suppliers and vendors.

The combination agreement has not been without its challenges, however. The merger has faced regulatory scrutiny from antitrust authorities in various countries, including the European Union and the United States. The concerns raised by these authorities relate to the potential monopolization of the eyewear industry and the impact on competition.

Despite these challenges, the merger is still expected to go through, and the creation of EssilorLuxottica is likely to be a game-changer in the eyewear industry. With its vertically integrated business model and ability to innovate and develop new products, EssilorLuxottica has the potential to reshape the industry landscape and cement its position as a dominant player in the market.

As a professional, it`s important to note that this article should include relevant keywords such as EssilorLuxottica, combination agreement, eyewear industry, vertically integrated business model, innovation, cost savings, and regulatory scrutiny. By including these keywords in the article, it will be more visible to readers searching for information on the merger and the impact it has on the eyewear industry.