The ACCC has stated it will not oppose the proposed merger between Essilor International (Essilor) and Luxottica Group S.p.A. (Luxottica).
ACCC Commissioner Roger Featherston indicated initial concerns regarded a direct competitive overlap between the two companies.
In Australia, Essilor mainly sells wholesale finished ophthalmic lenses, used to correct visual impairments.
Luxottica largely supplies wholesale prescription frames and sunglasses, including such brands as Ray-Ban, Oakley and Prada. Luxottica also has retail outlets, such as OPSM and Laubman & Pank.
“The ACCC focussed on the increased vertical integration, and whether the combined company having operations in all parts of the optical supply chain would give rise to a substantial lessening of competition.
“While Luxottica does supply market leading branded frames and sunglasses, retailers have generally indicated that there are alternative suppliers of frames and sunglasses that they could switch to if they did not wish to purchase from the combined Essilor-Luxottica. There are also other options for lenses,” said Featherston.
The ACCC confirmed it had consulted a variety of relevant parties, with Featherston stating there had been a mixed response.
“The ACCC spoke to a range of interested parties including customers, competitors, buying groups and industry associations. The feedback from market participants was mixed, with some expressing concern while others expressed no concerns about the proposed merger."
The ACCC also considered whether the combined Essilor-Luxottica could tie or bundle its supply of frames and lenses to independent retailers to the detriment of competition.
The ACCC concluded that any attempt to bundle the supply of these brands with the supply of lenses would be unlikely to substantially lessen competition.