CHARENTON-LE-PONT, France—Essilor International (Reuters: ESSI.PA) reported that on Oct. 3, 2017, its board of directors confirmed that the hive-down of Essilor’s activities is expected to be completed by the end of 2017. The hive-down, which involves transferring Essilor’s net assets and trade into a new company which will then be combined with Luxottica (MTA: LUX), was previously approved by Essilor’s shareholders during the general shareholders’ meeting held on May 11, 2017.

Following the hive-down, Essilor will contribute its activities and equity holdings to one of its subsidiaries, formerly named Delamare Sovra, which has been renamed Essilor International and which will carry on the operational activities currently performed by Essilor.

The hive-down of Essilor’s activities is a condition precedent to the contribution by Delfin of its Luxottica shares to Essilor. Once the other conditions precedent to complete the contribution of the Luxottica shares to Essilor are satisfied, Essilor will be renamed EssilorLuxottica and will become a holding company at the top of the combined group, holding Essilor International and Luxottica.

The governance of Essilor International will be similar to the current governance of Essilor. Hubert Sagnieres will be chief executive officer of the company, and Laurent Vacherot will be deputy chief executive officer.