Opthalmic optics firm Essilor and eyewear company Luxottica have agreed to merge, creating an eyewear industry giant with a market value of about $49bn.

Luxottica’s main investor Delfin has signed an agreement with Essilor to create a new integrated eyewear firm EssilorLuxottica.

With around 140,000 employees, the combined company carries out operations in around 150 countries across the globe.

Once the deal concludes, Delfin will own between 31% and 38% of the shares in the new firm, while Essilor will monitor the operating activities through new wholly-owned firm Essilor International.

Essilor is engaged in the development, manufacturing and marketing of various lenses to improve and protect eyesight.

The company produces its products under different brands such as Varilux, Crizal, Transitions, Eyezen, Xperio, Foster Grant, Bolon and Costa.

It also develops and markets equipment, instruments and services for eyecare professionals.

Luxottica is involved in the designing, manufacturing and distribution of eyewear products under different brands such as Ray-Ban, Oakley, Vogue Eyewear, Persol, Oliver Peoples and Alain Mikli.

The firm’s portfolio also includes licensed brands, comprising of Giorgio Armani, Burberry, Bulgari, Chanel, Coach, Dolce&Gabbana, Michael Kors, Prada, Ralph Lauren, Tiffany & Co., Valentino and Versace.

Luxottica executive chairman Leonardo Del Vecchio will act as executive chairman and CEO of EssilorLuxottica, while Essilor chairman and CEO Hubert Sagnières will serve as executive vice-chairman and deputy CEO of the new firm.

Hubert Sagnières said: "Our project has one simple motivation: to better respond to the needs of an immense global population in vision correction and vision protection by bringing together two great companies, one dedicated to lenses and the other to frames.”

The deal is subject to to Essilor's Works Councils' information and consultation procedure as per French law.

Image: Opthalmic optics firm Essilor to merge with eyewear company Luxottica Group. Photo: courtesy of Essilor.