Ray-Ban maker EssilorLuxottica considers suing GrandVision over €7.2bn takeover breaches
Ray-Ban maker EssilorLuxottica is considering suing Dutch eyewear retailer GrandVision after a court ruled it violated the terms of their €7.2bn acquisition agreement, according to reports.
On Monday, an arbitration court ruled that GrandVision had breached obligations of the takeover agreement, after which Essilor said it was reviewing its options.
The deal breaches meant EssilorLuxottica is no longer bound to the pact, Reuters first reported, citing sources with knowledge of the matter.
“The outcome of the arbitrage has confirmed what EssilorLuxottica has said all along: that the management of GrandVision has been engaged in a scheme that broke not just the spirit but also the material terms of the contract governing a €7bn transaction,” the source said.
“The next step is for Essilux to prepare for legal action against GrandVision and its management, seeking damages consistent with the scale and importance of the transaction they have undermined.”
GrandVision declined to comment when contacted by CityAM
French-Italian eyewear giant EssilorLuxottica confirmed its bid for GrandVision in July 2019, but the future of the deal has been thrown into the air amid a legal battle.
Essilor has claimed GrandVision breached the agreement with decisions it made during the pandemic.
The court ruled that GrandVision had breached agreements by suspending payments to store owners and suppliers, as well as by applying for government pandemic-aid, without seeking Essilor’s approval.
CityAM has contacted EssilorLuxxotica comment.