Acquirer: Luxottica Group; Target: OPSM Group Ltd

Acquirer(s)

  • Luxottica Group

Target(s)

  • OPSM Group Ltd

Summary

Luxottica proposed to acquire OPSM.

Market definition

Retail supply of sunglasses, wholesale supply of prescription frames, wholesale supply of sunglasses and retail optical dispensing.

Competition analysis

In July 2003 the Commission decided that it would not oppose the proposed acquisition of OPSM Group Limited by Luxottica Group SpA.

The proposed acquisition involved both a horizontal merger arising from the parties' interests in sunglass retailing, and a vertical merger arising from their interests in the wholesale and retail supply of prescription frames and sunglasses.

The ACCC found that the merged firm would still face sufficient competitive constraints in relation to the retail sale of sunglasses. The merged firm may achieve some efficiencies from its vertical integration and, given the presence of other wholesale and retail competitors and the availability of other brands, would be unlikely to have market power at the wholesale or retail levels that it could use to raise its rivals' costs.

Accordingly, the ACCC considered that the proposed acquisition was unlikely to substantially lessen competition.

Merger type

Vertical

Guidelines thresholds

Unknown

Imports above 10%

Unknown

Initiation

Parties

ANZSIC code

8632