An Essilor-Luxottica merger offers a tempting value proposition through top-to-bottom vertical integration.
But not everyone is happy with the proposed combination. Mounting customer pushback is biting into the operational prospects and could pose an additional hurdle in the antitrust review.
With antitrust complexities now at the heart of the merger case, we sought expert advice. A green light is likely, but not before 2018, and remedial action may be required, with structural measures favoured over behavioural commitments.
Even if valuation seems increasingly attractive, forex and the absence of more favourable news flow in the short term keep us on the side-lines on both stocks.
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