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EL - EssilorLuxottica SA News Story

€159.16 5.2  3.4%

Last Trade - 30/07/21

Sector
Consumer Cyclicals
Size
Large Cap
Market Cap £57.36bn
Enterprise Value £60.37bn
Revenue £12.28bn
Position in Universe 18th / 841

BREAKINGVIEWS-EssiLux has clear view to Dutch deal discount

Tue 22nd June, 2021 10:28am
(The author is a Reuters Breakingviews columnist. The opinions expressed are her own.) By Lisa Jucca MILAN, June 22 (Reuters Breakingviews) - The Ray-Ban maker’s target, GrandVision, breached terms of a 7.2 bln euro takeover agreed in 2019. EssilorLuxottica can walk away, but a better option would be to negotiate a lower price. Lopping off 15% would reflect Grandvision’s weaker earnings and lack of alternative buyers. Full view will be published shortly. Follow @LJucca https://twitter.com/LJucca on Twitter CONTEXT NEWS - A Dutch arbitration court ruled on June 21 that optical retailer GrandVision had breached its obligations under a 7.2 billion euro takeover offer from French-Italian eyewear giant EssilorLuxottica agreed in 2019. - The ruling means EssilorLuxottica, the 66 billion euro maker of Ray-Ban glasses and Varilux lenses, is no longer obliged to purchase GrandVision. - The court said GrandVision had breached the terms of the deal by suspending payments to store owners and suppliers during the pandemic and by applying for state aid without seeking EssilorLuxottica’s approval. - GrandVision shares were down 7.1% at 25.35 euros by 0845 GMT on June 22. EssilorLuxottica’s Paris-listed shares were down 1.9% at 147.5 euros. - For previous columns by the author, Reuters customers can click on JUCCA/ <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ EssiLux weighs ending $8.6 bln Grandvision takeover after court rules urn:newsml:reuters.com:*:nL2N2O32R5 EssilorLuxottica statement https://www.essilorluxottica.com/essilorluxottica-welcomes-favorable-outcome-arbitration-confirming-material-breaches-grandvision-0 GrandVision statement https://www.grandvision.com/media/news/update-on-arbitration-proceedings-between-essilorluxottica-and-grandvision.htm BREAKINGVIEWS-Ray-Ban maker may finally live up to merger vision urn:newsml:reuters.com:*:nL5N2NB36H ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (SIGN UP FOR BREAKINGVIEWS EMAIL ALERTS http://bit.ly/BVsubscribe | Editing by Ed Cropley and Karen Kwok) ((lisa.jucca@thomsonreuters.com ; Reuters Messaging: lisa.jucca.thomsonreuters.com@reuters.net))
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