PARIS, (MILLAT+APP/AFP) – French lensmaker Essilor
said Monday it has agreed to buy Italy’s Luxottica, maker of Ray-Ban sunglasses, in a bid to create a new global giant in the sector.
The news sent Essilor shares up by more than 14 percent on the Paris stock exchange and Luxottica shares upo more than 13 percent in Milan.
The combined group will have market capitalisation of around 46.2 billion euros ($49 billion), based on both companies’ closing share prices on Friday.
Under the terms of the transaction, the family of Leonard Del Vecchio, Luxottica chief executive — who controls a stake of 62 percent via holding company Delfin — will hand over his stake to Essilor, which will then launch a public bid to buy the remaining shares.
The combined group, to be known as EssilorLuxottica, will have annual sales of more than 15 billion euros and employ a workforce of 140,000 worldwide.
Luxottica chief Del Vecchio will become chief executive of the new company and Essilor head Hubert Sagnieres his deputy.
The boards of directors of both companies have approved the transaction.