EssilorLuxottica has the right not to complete the acquisition of GrandVision due to serious breaches by the latter of its obligations towards EssilorLuxottica. This is the decision taken by the Arbitration Court in the proceedings initiated by HAL and GrandVision.
For Equita, the acquisition transaction makes strategic sense for EssiLux, today as in 2019, and the value of the asset is not far from 2019 levels, considering the performance of similar stocks such as Fielmann and the final results in 2020 and the prospects for 2021. “We therefore think that EssiLux will decide to complete the operation, also in light of the long and complex authorization process recently completed, at the most seeking a renegotiation of the price to take into account the impacts of the pandemic” continue the SIM experts. Compared to the consensus estimates at the date of the acquisition announcement, GrandVision reported a net debt in 2020 higher of about 60 million and experts see a 2021 net debt higher of about 200 million. The SIM experts essentially evaluate the GrandVisioni operation positively for EssilorLuxottica, with a post-deal target of € 158 per share against € 139 per stand-alone share.