Essilor of France announced on Monday a $49 billion merging deal with Luxottica Group of Italy that is poised to become a "clear leader in the optical industry." 

Luxottica, owner of Ray-Ban and Oakley that makes prescription eyeglasses and sunglasses under a variety of labels, holds a 14 percent global market share, while lens maker Essilor accounts 13 percent share, according to the market research firm Euromonitor International.

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The partnership, to be known as EssilorLuxottica, is set to become a market leader. According to UBS, initial calculations revealed that the new tandem would have generated 15 billion euros ($16 billion) in sales and 3.5 billion euros ($3.74) reported earnings before interest, tax, depreciation, and amortization in 2015, CNBC noted.

Furthermore, the new group would have both online and in-stores presence, with brands including Foster Grant, Oliver Peoples, Persol, LensCrafters, Pearle Vision, and Sunglass Hut. Based on 2015 data, EssilorLuxottica would have more than 140,000 employees in more than 150 countries.

"By joining forces today, these two international players can now accelerate their global expansion," Hubert Sagnières, the Essilor chairman and chief executive, said in a news release.

Essilor and Luxottica have a strong brand portfolio, manufacturing lenses for prescription glasses and sunglasses, as well as frames and global distribution capabilities.

The transaction is expected to close by the second half of 2017, but it still requires regulatory and shareholder approval.

TagsEssilor and Luxottica Merge, Giant Eyewear Industry, Essilor, Luxottica, Ray-Ban, Oakley