EssilorLuxottica reconsidering GrandVision acquisition, sources say
French-Italian eyewear group EssilorLuxottica is reconsidering its several-billion-dollar takeover of Dutch distributor Grandvision, people familiar with the matter told Bloomberg.
According to Bloomberg's report, the group is concerned about the impact of Covid-19 on Grandvision's business, in addition to legal issues that have arisen between the two parties in their negotiations.
EssilorLuxottica had agreed a price of at least 7.3 billion euros for the sale during negotiations carried out in July 2019. But since then, the share price has fallen below the agreed level.
The EU has also recently insisted on concessions in order to push through the deal, according to media reports. An EssilorLuxottica spokesperson did not wish to comment.
In January, European competition authorities said they were ready to open an in-depth investigation into the takeover offer. In August, the Dutch judiciary refused EssilorLuxottica its request for further information about GrandVision's management of the coronavirus crisis. The following day, EssilorLuxottica announced that it was considering its options, including a potential appeal.
GrandVision currently has over 7,000 stores worldwide, while EssilorLuxottica reported adjusted net sales of 1.94 billion euros in 2019, an increase of 9.2%. Its turnover rose by 7.4% to 17.39 billion euros. In 2020, the group is predicting revenue growth at constant exchange rates of 3-5%.
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