The Commerce Commission has granted clearance for Essilor International (Compagnie Générale d’Optique) S.A. and Luxottica Group S.p.A to merge their business activities in New Zealand.

The proposed global merger brings together a supplier of prescription lenses (Essilor) with a supplier of prescription frames and sunglasses (Luxottica). The parties have sought clearance from a number of regulators in different countries including New Zealand.

Commerce Commission Chairman Dr Mark Berry said the watchdog is satisfied that the acquisition is unlikely to substantially lessen competition in New Zealand markets.

“Competition is strong and we believe the merged entity will be sufficiently constrained by the presence of existing competitors with the ability to expand at all levels of the supply chain and in all relevant markets.”

In reaching its decision, the government agency said it considered the impact on New Zealand markets for the import and supply of unfinished prescription lenses, the wholesale supply of finished prescription lenses and frames, and the retail supply of prescription lenses and frames, contact lenses and non-prescription sunglasses.

In New Zealand, Essilor is principally active in the wholesale supply of finished prescription lenses to optical retailers. Essilor is also active in the retail market to a limited extent via its online store. Meanwhile Luxottica is a global manufacturer and wholesale supplier of prescription frames and sunglasses. In New Zealand, Luxottica’s activities are limited to the wholesale supply of prescription frames and sunglasses, and the retail of optical products and services (via its OPSM, Sunglass Hut, and Oakley stores).