EssilorLuxottica becomes Nikon's largest shareholder, gets clearance to up holding to 20%

EssilorLuxottica (ESLX.PA) has increased its stake in Japan's Nikon (7731.T) to 10.8% from 9.6%, becoming its largest shareholder, and has secured regulatory approval to further raise its holding up to 20%. This strategic move, building on a long-standing joint venture, prompted a 5% surge in Nikon's share price and signals potential for deeper integration or increased influence by the French-Italian eyewear giant.

Analysis

TOKYO, Oct 6 (Reuters) - French-Italian eyewear maker EssilorLuxottica (ESLX.PA) raised its holding in Japan's Nikon (7731.T) to 10.8% from 9.6% to become its largest shareholder, Nikon said on Monday. The maker of Ray-Ban sunglasses has also received permission to raise its stake in Nikon to 20% from the relevant authorities under Japan's Foreign Exchange and Foreign Trade Act, the release said. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. Nikon's share price rose 5% on Monday on news EssilorLuxottica had raised its stake. Advertisement · Scroll to continue The two companies first established a Tokyo-based lens wholesale joint venture in 2000. EssilorLuxottica has been steadily increasing its holding over the past year, sparking a rally in Nikon's share price. Reporting by Anton Bridge; Editing by Kim Coghill and Louise Heavens Our Standards: The Thomson Reuters Trust Principles. EssilorLuxottica (ESLX.PA) has solidified its strategic interest in Nikon (7731.T) by increasing its holding to 10.8%, thereby becoming the company's largest shareholder. This move is not a terminal action but part of a larger, deliberate strategy, evidenced by the concurrent receipt of regulatory approval under Japan's Foreign Exchange and Foreign Trade Act to raise its stake to as high as 20%. The market has interpreted this development as strongly positive, driving Nikon's share price up by 5% and extending a rally that has been fueled by EssilorLuxottica's steady share accumulation over the past year. This escalation in ownership builds upon a long-standing partnership, which includes a lens wholesale joint venture established in 2000, and signals a potential shift from a collaborative relationship to one of significant influence or deeper integration.

Key Decisions for Investors

• Investors in Nikon (7731.T) should recognize the strong bullish signal from EssilorLuxottica's actions, as the regulatory approval for a 20% stake provides a clear support level and a potential catalyst for further share price appreciation.
• It is crucial to monitor the pace of EssilorLuxottica's share purchases and any further statements on strategic intent, as the primary driver of Nikon's recent valuation uplift is now M&A speculation.
• For those holding EssilorLuxottica (ESLX.PA), this investment should be viewed as a strategic positive that reinforces its vertical integration model and secures deeper access to Nikon's valuable optics technology.