Essilor International SA - completed acquisition of a majority interest in Eyebiz Laboratories Pty Limited

Acquirer(s)

  • Essilor International SA

Target(s)

  • Eyebiz Laboratories Pty Limited

Market definition

The ACCC considered the completed acquisition in the context of the following markets:
- the national market for the supply of ophthalmic lens processing services;
- the national market for the supply of ophthalmic lenses; and
- local markets for the retail supply of optical dispensing services.

Competition analysis

The ACCC concluded that the completed acquisition would be unlikely to result in a substantial lessening of competition in any relevant market for the following reasons:
- pre-acquisition, Eyebiz exclusively supplied lens processing services to Luxottica retail outlets, however it would now be able to supply lens processing services to non-Luxottica retailers;
- the completed acquisition would involve a direct transfer of Luxottica's lens processing volumes from Eyebiz to Essilor and would therefore be unlikely to impact the existing structure of the market;
- Eyebiz appeared to have acquired limited volumes of ophthalmic lenses from suppliers other than Essilor, and the completed acquisition appeared to formalise existing supply arrangements;
- there appeared to be a number of independent (non-integrated) lens processing laboratories available to rival suppliers of ophthalmic lenses. Further a number of suppliers of ophthalmic lenses were also vertically integrated into the supply of lens processing services; and
- there appeared to be a number of independent lens processing laboratories available to independent retail customers.

Timeline

DateEvent
08/02/2010Luxottica announced that Essilor had acquired a majority interest in Eyebiz.
12/03/2010ACCC commenced a public review under the Merger Review Process Guidelines.
17/03/2010ACCC requested further information from the target. ACCC timeline suspended.
24/03/2010ACCC received further information from target. ACCC timeline recommenced.
01/04/2010Closing date for submissions from interested parties.
24/05/2010ACCC announced it would not oppose the completed acquisition.