CHARENTON-le-PONT, France—EssilorLuxottica (Euronext: EL) said Monday that the Swiss arbitral tribunal in the proceedings initiated by HAL Holdings NV and GrandVision (Euronext: GVNV) had ruled in its favor. The arbitral tribunal ruled that EssilorLuxottica now has the option to terminate the acquisition of GrandVision “due to GrandVision’s material breaches of its obligations to EssilorLuxottica,” the announcement noted. EssilorLuxottica said it is reviewing its options on the deal and “in due course will communicate its determination on the way forward.”

The deal, first announced in July 2019, had called for EssilorLuxottica to acquire from HAL Holding the latter’s 76.7 percent interest in GrandVision in a deal that analysts valued at €7.1 billion at the time. However, while regulators globally had approved the transaction, the remaining hurdle was a July 2020 move by GrandVision to seek arbitration to resolve a dispute over some unspecified matters related to the transaction, as VMAIL reported.

The arbitration proceedings were confidential and were held behind closed doors.

“Although we regret that GrandVision’s misconduct has led to this current situation, we are pleased that the tribunal accepted our position on the parties’ commitments and the importance of honoring those commitments,” Francesco Milleri, CEO of EssilorLuxottica, said in Monday’s announcement.

In a separate statement late yesterday, GrandVision said the arbitral tribunal’s ruling was a majority decision, and that the finding was that “GrandVision [had] breached its obligations under the Support Agreement it had entered into in connection with the sale of HAL’s 76.7 percent interest in GrandVision to EssilorLuxottica.”

In addition, GrandVision said it is “disappointed” by the decision of the arbitral tribunal. “Throughout the process, GrandVision has fully supported the Transaction,” the company said.

GrandVision also noted that “further announcements will be made if and when required.”