Eyewear group EssilorLuxottica resolves governance dispute

Published 13/05/2019 in Business News, Economy & Finance

Eyewear group EssilorLuxottica resolves governance dispute

PARIS (Reuters) – Eyewear group EssilorLuxottica said it had resolved a dispute between its feuding French and Italian partners, and would push on in its search for a new chief executive and its aims to centralize various new corporate functions.

The resolution of the dispute will see both Franceso Milleri, from Luxottica, and Essilor’s Laurent Vacherot not apply to become new group chief executive. EssilorLuxottica’s shares rose 3 percent in early trading.

EssilorLuxottica resulted from the 54 billion euro ($61 billion) merger last year of French lenses maker Essilor and Italian peer Luxottica, which were supposed to have equal weighting in the combined company’s leadership but had accused each other of trying to dominate.

The company added that Milleri and Vacherot would be tasked with accelerating moves to simplify the new group by fully integrating the French and Italian parts within the next 12 to 24 months.

“I’m very pleased of this outcome,” said Leonardo Del Vecchio, Executive Chairman of EssilorLuxottica.

“The industrial rationale of the combination is even stronger when looking at all the opportunities raised during the meetings of the Integration Committee. Today, respecting the equal power and the combination agreement, we have found a solution to better execute such strategic combination,” he added.

That view was echoed by Del Vecchio’s French counterpart Hubert Sagnieres, who is vice-chairman of EssilorLuxottica. He added that resolving the dispute would leave EssilorLuxottica well placed to accelerate its growth.

($1 = 0.8900 euros)

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