European eyewear giant in merger of Luxottica and Essilor

This Thursday, Sept. 22, 2016 photo shows the logo of the Essilor a French ophthalmic optics company, in Charenton le Pont, east of Paris. Essilor International SA announced Monday Jan.16, 2017 it had reached a share exchange deal with Luxottica's main shareholder Delfin to create a combined company making both frames and lenses. (AP Photo/Michel Euler) (The Associated Press)

A new European eyewear giant is set to emerge as Italian frames maker Luxottica — maker of brands like Ray-Ban and Oakley — joins with French lens manufacturer Essilor in a multibillion-euro merger.

Essilor International SA announced Monday it had reached a share exchange deal with Luxottica's main shareholder, Delfin, to create a combined company making both frames and lenses.

Shares in Luxottica and Essilor jumped on the news.

The statement said the new company would have combined revenues of more than 15 billion euros ($16 billion), 140,000 employees and sales in more than 150 countries.

Essilor said the merger is an effort to meet growing global demand for corrective lenses, sunglasses and luxury frames.