(Bloomberg) — Nikon Corp.’s shares surged their most in two months after disclosing that French eye-wear maker EssilorLuxottica SA has taken a 5.1% stake in the smaller Japanese rival to ASML Holding NV.
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Nikon surged as much as 10.2% before closing 7.9% higher in Tokyo, its biggest single-day rise since August. EssilorLuxottica, which already operates an eye-wear joint venture with Nikon that was set up in 2000, began accumulating the Japanese firm’s shares from as early as Aug. 5 through Oct. 1, according to a finance ministry filing.
Lenses have become a strategic component in cutting-edge and emerging technologies in recent years. EssilorLuxottica has a long-term partnership, via sunglasses brand Ray-Ban, with Meta Platforms Inc. to develop smart wearable products.
The US company plans to invest in EssilorLuxottica, Chief Executive Officer Francesco Milleri told analysts in July, after Bloomberg News reported the social media leader was considering a stake of up to 5%.
While ASML relies on Germany’s Carl Zeiss AG for lenses, Nikon possesses its own know-how in the field. The Japanese company does not have the capability to build the equivalent of the Dutch rival’s state-of-the-art extreme ultraviolet lithography systems, required to make the most cutting-edge semiconductors.
But earlier this year, Nikon said it will invest 100 billion yen ($674 million) by 2030 to bolster its lenses and other offerings.
Representatives at Nikon and EssilorLuxottica did not have immediate comment on the deal.
–With assistance from Tommaso Ebhardt and Yuki Furukawa.
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