The merger of the glasses giant Lu Xun Lai and Essilor was forced to postpone

Due to the delayed approval of the Chinese regulatory authorities, the world's largest eyewear manufacturer Luxottica Group SpA (MTA: LUX; NYSE: LUX) Luxitika Group announced on Friday that it and the French optical glasses manufacturing giant Essilor International SA (EI. PA) Essilor Group's trading period will be delayed until July 31.

In the statement, Lu Xun Tika said that the parties still believe that in the next few weeks, the merger will complete the anti-monopoly investigations of the Chinese and Turkish regulatory authorities and successfully complete the transaction.

As the transaction has not been approved, the new company Essilor Dacoz Luxottica's first general meeting scheduled to be held on July 25 will also be postponed, but the specific date is yet to be redrafted.

On January 15, 2017, the giant earthquake in the glasses manufacturing industry, Lu Xun Tica card announced the acquisition of Essilor, the merger of a share of Lu Xun Tica card for 0.461 shares of Essilor. The combined company, Essilor Luxottica, will have a revenue of 17 billion euros and a total of 140,000 employees, operating in 150 countries and regions.

After the merger, Luxen Card Holdings Delfin will own 31-38% of the new company Essilor Luxottica shares, becoming the new largest company's shareholder, with 31% of voting rights.

In fiscal 2017, after eliminating the exchange rate impact, Lu Xun Tika achieved net sales of 9.157 billion euros, an increase of 2.2% over 2016, and the sales contribution in the US market reached 57%; adjusted operating profit increased by 2.7% to 1.442 billion euros. Adjusted net profit surged 12.2% to 970 million euros thanks to the US tax reform, the Italian patent tax incentive system and the decline in debt costs. The group expects net sales this year to record a fixed exchange rate increase of 2%-4%, and the adjusted net profit growth rate can be up to twice the sales growth.

The first quarter earnings report at the end of April showed that the Lu Xun Tika Group's first-quarter sales recorded a 0.8% fixed exchange rate decline due to bad weather and clean-up wholesale channels. The strong euro also Rosewholesale Coupons caused the Group's actual sales to plummet more than 10% in January-March.

Italy Group Executive Chairman Leonardo Del Vecchio said in the earnings report that following the clean-up of wholesale channels in China, the Group has also embarked on a channel balancing strategy in Europe aimed at bringing consumers closer to consumers and improving their innovation capabilities. The company continues to invest in technology through the advantages of digital transformation.

Leonardo Del Vecchio said in the quarterly report at the end of April that China, the only core market for the merger, is expected to be approved by the authorities in the first half of the year.

But now it seems that the Italians are too optimistic. Under the shadow of the Sino-US trade war, the Chinese authorities may focus all of their centers on resolving the above disputes, and China’s attempt to win over the EU’s RoseGal Coupons joint trade policy against the United States has not been recognized by the European Union.

Essilor is expected to accelerate to 4% this year after achieving a 3.1% increase in comparable revenue last year. Last year, the group's revenue totaled 7.49 billion euros, and its operating profit margin fell from 18.6% in 2016 to 18.2%, while this year's outlook is 18.3%.