The Australian Competition and Consumer Commission will not oppose the proposed acquisition of the OPSM Group Limited by Luxottica Group SpA, ACCC Chairman, Mr Graeme Samuel, said today.
OPSM is a publicly listed company with approximately 477 retail optical dispensing stores throughout Australia. OPSM operates the Budget Eyewear, OPSM, Laubman & Pank, Kay's Optical and Precision Eyewear retail outlets in Australia.
Luxottica operates the Sunglass Hut and Face-It retail outlets in Australia, and is a wholesale distributor of prescription frames and sunglasses including the Ray Ban, Arnette, Killer Loop and Revo brands.
"As part of its investigation of the proposed acquisition, the ACCC conducted market inquiries among other wholesale distributors, sunglass retailers, optical dispensers, buying groups and industry associations", Mr Samuel said. "In reaching its view the ACCC examined the likely competitive constraints that the merged firm would face.
"Following market inquiries the ACCC decided that the proposed acquisition is unlikely to substantially lessen competition.
"The proposed acquisition involves 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 would cause prices to rise.
"Accordingly, the ACCC will not intervene in the proposed acquisition".