Luxottica Retail Australia Pty Ltd - proposed acquisition of 16 optical dispensing stores from Merringtons Pty Ltd

Market definition

Local markets for the retail supply of optical dispensing services and the wholesale supply of prescription frames in Australia were considered.

Competition analysis

On 8 May 2007, the ACCC formed the view that the proposed acquisition is unlikely to substantially lessen competition. Factors informing this conclusion include:
- the availability of independent optical dispensing stores for consumers in nearly all of the local areas relevant to the proposed acquisition;
- the relatively low barriers to entry and expansion in terms of sunk costs and the availability of retail space in strips or shopping centres; and
- the ability of independent stores to purchase supplies from non-Luxottica wholesalers and buying groups.