Shares in EssilorLuxottica, the world's largest eyewear producer and the maker of the famed Ray-Ban glasses, jumped on Wednesday after reports that tech giant Meta Platforms had acquired a stake of nearly 3% in the Franco-Italian company.
The shares, which are listed in Paris, rose 5.4% to 252 euros (nearly $295) by 9:25 a.m. GMT, the biggest gainer on the pan-European STOXX 600.
Facebook-parent Meta, which has a partnership with the company for the production of smartglasses, has acquired a nearly 3% stake in the eyewear maker, a source told Reuters on Tuesday.
Bloomberg said that Meta had bought a stake worth around 3 billion euros ($3.5 billion) in EssilorLuxottica and is considering further investments that could build its holding to around 5% over time.
EssilorLuxottica declined to comment, while Meta did not immediately respond when contacted by Reuters.
"The investment should be read as a vote of confidence in EssilorLuxottica in the smart-glasses opportunity," said analysts at Bernstein.
Last year, both EssilorLuxottica and Meta confirmed they discussed a potential investment by Meta in the company, after the Wall Street Journal reported the U.S. group was in talks to buy a 5% stake.
In September, Meta CEO Mark Zuckerberg said it would have been a "symbolic" gesture to cement their long-term partnership.
Sprucing up its wearable technology with artificial intelligence capabilities could help Meta attract new users as it invests billions of dollars in bolstering its AI infrastructure.
The social media giant announced earlier this year it teamed up with Oakley, another EssilorLuxottica brand, to release AI-powered smart glasses, expanding its push into wearable tech after the success of Ray-Ban Meta glasses, millions of which have been sold since their launch in 2023.
The "Oakley Meta HSTN" will feature a hands-free high-resolution camera, open-ear speakers, water resistance and Meta AI capabilities.
EssilorLuxottica planned to boost its production capacity for smart glasses and hopes to expand its collaboration with Meta to other brands, Chief Executive Francesco Milleri had said in February.
