is the takeover good for us??? (must read)

  1. 3,918 Posts.
    Hey guys,

    Was thinking about this one the other day and just want a few of your opinions as I really think maybe the ACCC isn't getting it right here! I have a bit of knowledge here cause I worked for Sunglass Hut International (largest sunglass retail chain in the world) for 3 years when I was at Uni.

    Recently Luxoticca Group announced a full take over bid for OPSM for $3.90 which represented a 21.9% premium to the price at the time. While this is a good increase for shareholders and directors have unanimously recommended all shareholders accept the bid, I think it does NOT reperesent the best interest of Australian Consumers and I'll explain why now.

    Luxoticca Group is a massive Italian owned eyewear company that owns many of the worlds famous sunglass brands such as Ray Ban, Killer Loop, Arnette among others. Recently they have been on a spending spree and quickly snapped up the company I used to work for, Sunglass Hut International which is infact the world's largest retail chain with well over 2000 stores worldwide. This was a great purchase for Luxoticca as it allows them to sell their products direct from manufacturing (which cost f*ckall anyway) directly to the end consumer with cutting out all middle men (hence the total margin with the sale would be phenomenal - prob around at least a markup of 10 times).

    Now this is all good but exactly what interest does the ACCC serve consumers when Luxoticca Group are on the verge of swallowing up Australia's 2nd biggest sunglass retail chain? The question that has to be asked is how will this impact competition/price fixing when a huge Italian Group owns both the World's largest sunglass retail chain AND Australiasia's 2nd largest sunglass retail chain???

    Me thinks that surely Luxoticca will unquestionably own a monopoly in the sunglass retail market and perhaps we (consumers) will be made to pay the most.

    Remember that Luxoticca Group also owns many of the world's biggest sunglass brands, so what would happen if you or I wanted to open up a new sunglass retail branch here in Oz to compete against either Sunglass Hut or OPSM - will they give us the same wholesale prices to their brands to enable us to compete???


    PS - I can't believe the ACCC haven't thought or at least taken the above into consideration.
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