The arbitration court ruled on Monday that GrandVision has failed to fulfill its obligations, giving EssilorLuxottica the opportunity to revise the agreed terms for a takeover. This is what KBC Securities analysts said on Tuesday.

Given the logic of an acquisition and all the approvals already obtained, KBC believes that EssilorLuxotitica will insist on renegotiating the terms.

The arbitration court ruled on Monday that GrandVision has failed to fulfil its obligations, giving EssilorLuxotica the opportunity to withdraw from the deal. This is a serious miscalculation for major shareholder HAL and GrandVision themselves, according to KBC. If Essilor runs away, then according to KBC, GrandVision’s price can return to a standalone valuation, which is estimated at 21.40 euros per share.

KBC Securities maintained its advice on GrandVision with a price target of 28.00 euros. The share fell by 7.9 percent on Tuesday morning to 25.15 euros.

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