An Essilor International briefing on the progress of the proposed €46bn (£40bn) merger with Luxottica has revealed the agreement for the joint governance of newly formed EssilorLuxottica would remain in place for ‘about three years.’
This would start when Delfin, owned by Luxottica founder Leonardo Del Vecchio, conferred its 62.5% of Luxottica to the new group. Del Vecchio will receive a share of between 31% and 38% of the capital in return.
The first EssilorLuxottica board will comprise 16 members divided equally between the two companies. After three years, the appointment of executives could be proposed by the board on the recommendation of a nominations committee or of any shareholder ‘regardless of where the candidates are from’ or whether they are linked to Luxottica or Essilor.
The merger was expected to be completed in late 2017.