On Sunday, it was announced by International Flavors and Fragrances Inc. that it is going to be merged with the DuPont Inc.’s unit of nutrition and biosciences worth $26.2 billion in a deal that will lead to the creation of a new giant in the consumer world which is going to be valued at over $45 billion.
As per the terms of this agreement the shareholders of DuPont are going to own as many as 55.4% of the new company’s shares and the existing shareholders of IFF are going to own 44.6% as per a statement which came out of the IFF.
IFF which is based in New York said that this deal has been approved unanimously by both the boards.
DuPont which makes industrial materials is also going to receive a cash payment which is going to be a one-time payment once the deal is going to be close. The payment is going to be $7.3 billion as per IFF.
The CEO of IFF, Andreas Fibig is going to run this combined company and is going to still stay as the board’s chairman.
There were reports earlier that Kerry Group of Ireland is going to negotiate with DuPont for their unit.
The Executive Chairman of DuPont has said that they had conducted an extremely thorough process which led to them selecting IFF as their preferred partner for the division of nutrition and biosciences.
IFF creates fragrances and flavors and works with brands globally for developing tastes and scents for the products that are very popular.
Fibig said that they are together going to create ingredients and be provider of solutions which meet the needs of the customer’s needs.