EssilorLuxottica Launches Legal Action Against Acquisition Target.
The Franco-Italian giant, EssilorLuxottica alleges that GrandVision has not been forthcoming in providing operating results in view of the COVID pandemic., in a legal proceeding launched July 18th. At issue is the financial impact of the COVID pandemic on business operations, and the possibility of renegotiating a new valuation based on a decline in revenues and profit.
EssilorLuxottica had agreed to buy the rival optical chain nearly one ear ago by purchasing the 76.2 per cent stake from Hal Holding.
The Netherlands-based retail chain counters they are committed to finalizing the acquisition in the timetable specificed in the purchase agreement from one year ago.
A company statement responds, “GrandVision strongly disagrees with these claims and has responded accordingly. GrandVision continues to support EssilorLuxottica with the shared objective to obtain regulatory approval for the closure of the Transaction within 12 to 24 months from the announcement date of 31 July 2019”.
While the acquisition hopes to ad about 7,400 stores globally and more than 39,000 employees to the group. the agreement has been under evaluation by European competition authorities concerned it could lead to reduced competition and higher prices for consumers. European competition authorities are demanding that EssilorLuxottica sell retail stores in Italy and in either France or the Netherlands in order to finalize the sale.