MILAN: Italy’s Luxottica has parted ways with its fourth chief executive in three years as Chairman Leonardo Del Vecchio prepares the eyewear group he founded for a planned merger with France’s Essilor.
Luxottica, the biggest maker of spectacles, agreed in January to merge with the top lens manufacturer to create a €46 billion (SR203.65 billion) group with a global shop network and brands from Ray Ban to Giorgio Armani and Burberry.
Luxottica said on Friday Massimo Vian, CEO for product and operations would step down three months before the expiry of the current board’s mandate as it simplified its structure ahead of the merger.
Vian’s responsibilities will be handed to both Del Vecchio and his close aide Deputy Chairman Francesco Milleri, who will also take on the position of CEO.
“The post-merger integration of Essilor and Luxottica is fast approaching,” EXANE BNP Paribas said in a note.
EU regulators are set to clear the merger without asking for concessions, sources familiar with the matter said on Thursday. The deal still needs antitrust approval in the US, China and Brazil.
Del Vecchio, 82, told the Corriere della Sera newspaper on Saturday that Milleri would replace him at the merged group if anything happened to him. Milleri, 58, started working with Luxottica as an IT consultant and earned the trust of Del Vecchio, becoming over time his right-hand man.
Del Vecchio and Essilor CEO Hubert Sagnières are set to share powers at EssilorLuxottica for the first three years as, respectively, executive chairman and executive vice-chairman.
Sagnières, 62, told the Financial Times last week the group would look to hire a chief executive at some point.
“Sagnières has ruled himself out — as too old — which is a not too subtle indication that Del Vecchio is not in the game either,” EXANE said. “Investors shouldn’t expect a smooth post-merger integration path.”
Del Vecchio returned to the helm of Luxottica in 2014, taking on executive powers as chairman. One of Italy’s richest men, Del Vecchio is also known for his top-down management style, taking key decisions without broad consultation.
He has presided over an overhaul of the business he founded in 1961, boosting digital investments while also expanding the retail network, centralizing distribution in China and fighting online discounts of top brand Ray Ban in the US.
He owns 62.5 percent of Luxottica and will be the single biggest shareholder in the merged group
“In the past three years ... I’ve fixed and improved Luxottica to keep up with the times. And I was able to do it thanks to Francesco Milleri ... he shared every important decision,” Del Vecchio told Corriere.
Vian had been appointed at the top within a dual-CEO structure put in place in October 2014, after Luxottica lost two bosses in six weeks due to frictions with Del Vecchio. Vian had remained as the only CEO after co-head Adil Mehboob Khan left in January 2016.
An engineer who had joined in 2005, Vian will pocket a gross €6.3 million in addition to severance pay, Luxottica said.
Luxottica CEO exits eyewear giant ahead of Essilor merger
Luxottica CEO exits eyewear giant ahead of Essilor merger
Closing Bell: Saudi main index closes higher at 10,596
RIYADH: Saudi equities closed higher on Tuesday, with the Tadawul All Share Index rising 43.59 points, or 0.41 percent, to finish at 10,595.85, supported by broad-based buying and strength in select mid-cap stocks.
Market breadth was firmly positive, with 170 stocks advancing against 90 decliners, while trading activity saw 161.96 million shares change hands, generating a total value of SR3.39 billion.
Meanwhile, the MT30 Index closed higher, gaining 6.52 points, or 0.47 percent, to 1,399.11, while the Nomu Parallel Market Index edged marginally lower, slipping 3.33 points, or 0.01 percent, to 23,267.77.
Among the session’s top gainers, Al Masar Al Shamil Education Co. surged 9.99 percent to close at SR26.20, while Saudi Cable Co. jumped 9.98 percent to SR147.70.
Cherry Trading Co. rose 4.18 percent to SR25.44, and United Carton Industries Co. advanced 4.09 percent to SR26.46.
Al Yamamah Steel Industries Co. also posted solid gains, climbing 4.07 percent to end at SR32.70.
On the downside, Emaar The Economic City led losses, slipping 3.55 percent to SR10.32, followed by Derayah REIT Fund, which fell 2.92 percent to SR5.31.
Derayah Financial Co. declined 2.13 percent to SR26.62, while United International Holding Co. retreated 1.96 percent to SR155.20, and Gulf Union Alahlia Cooperative Insurance Co. eased 1.92 percent to SR10.70.
On the announcements front, Red Sea International Co. said it signed a SR202.8 million contract with Webuild S.P.A. to provide integrated facilities management services for the Trojena project at Neom.
The agreement covers operations and maintenance for the project’s Main Camp and Spike Camp, including accommodation and housekeeping, catering, security, IT and communications, utilities, waste management, fire safety and emergency response, as well as other supporting services.
The contract runs for two years, with the financial impact expected to begin in the first quarter of 2026. Shares of Red Sea International closed up 0.99 percent at SR34.74.
Al Moammar Information Systems Co. disclosed that it received an award notification from Humain to design and build a data center dedicated to artificial intelligence technologies, with a total value exceeding 155 percent of the company’s 2024 revenue, inclusive of VAT.
The contract is expected to be formally signed in February 2026, underscoring the scale of the project and its potential impact on the company’s future revenues.
MIS shares ended the session 2.82 percent higher at SR156.70, reflecting positive investor sentiment following the announcement.
