Luxottica Retail Australia Pty Limited - completed acquisition of licences in respect of 65 sunglass concessions within Myer Department Stores
Type of assessment
Informal Review
Reference
38573
Acquirer(s)
Luxottica Retail Australia Pty Limited
Target(s)
licences in respect of 65 sunglass concessions within Myer stores
Industry
Sunglass retailing
Outcome of assessment
Not opposed
Total review days *
59
Commenced public review
2nd September 2009
Date completed
25th November 2009
Market definition
The ACCC considered the completed acquisition in the context of the following relevant markets:
- local retail markets for the supply of mid and premium priced sunglasses; and
- the wholesale market for the supply of mid and premium priced sunglasses in Australia.
Competition analysis
The ACCC considered that the completed acquisition was unlikely to substantially lessen competition in local retail markets for the supply of mid and premium priced sunglasses due to:
- the existence of rivals to Luxottica including David Jones, independent sunglass retailers and independent optometrists;
- the credible threat to Luxottica from the potential expansion of some of these rivals, given the availability of alternative brands and retail space; and
- the little likelihood that the completed acquisition would significantly alter Luxottica's incentives with respect to supply of its wholesale sunglass range to rival retailers.
The ACCC considered that the completed acquisition was unlikely to substantially lessen competition in the wholesale market for the supply of mid and premium priced sunglasses in Australia due to:
- the existence of retail distribution alternatives to Luxottica including David Jones, independent sunglass retailers and independent optometrists; and
- the potential for rival wholesalers to expand distribution by vertically integrating into retail markets.
Review timeline
Date
Event
17th August 2009
Luxottica acquired the licences in respect of 65 sunglass concessions within Myer Department Stores.
2nd September 2009
Submission received from Luxottica. ACCC commenced review under the Merger Review Process Guidelines. Market inquiries commenced.
17th September 2009
Closing date for submissions from interested parties.
25th November 2009
ACCC announced it would not oppose the completed acquisition.
* Total Review days = Total business days less public holidays and time during which the review was suspended.
