French group Essilor bought famous Ray-Ban maker Luxottica

French lens maker Essilor agreed to buy Italy's Luxottica, the maker of Ray- ban sunglasses. After the merger, new group will become a giant in the eyewear industry. The combined group will have a market capitalization of around $49 billion. Under the deal, the family of Leonard Del Vocchio, the founder and chief executive will hand over his shares. He owns 62% shares of Luxottica through a holding company Deflin. The remaining shares will be bid by Essilor according to the market price. The shares of both groups went up after the news of merger came out.

Luxottica generates sales of 9 billion Euros in 2015. Essilor reached to the 6.7 billion Euros sales in the same year. The new group will operate from the joint head quarters situated in Paris. Now the frame maker and lens maker will operate under one name and one roof.

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