On Sunday, the IFF company said it will merge with E. I. du Pont de Nemours and Company's $26.2 billion nutrition unit in a deal that will establish a new consumer giant with a total value of $45.4 billion, Reuters reported.
“We conducted a very thorough process leading us to the selection of IFF as the preferred strategic partner for N&B”, DuPont Executive Chairman Ed Breen said. “Together, we will create a leading ingredients and solutions provider with a broader set of capabilities to meet our customers’ evolving needs”, IFF's Chief Executive Officer Andreas Fibig added.
Under the deal, DuPont shareholders will hold 55.4% of the shares of the new company, while 44.6% of the shares will be owned by IFF shareholders, IFF said in a statement.
According to International Flavors and Fragrances corporation, the merger agreement has received unanimous approval from both boards.
A one-time cash payment of $7.3 billion will be transferred to DuPont, Reuters said, citing IFF.
After the deal is finished, IFF expects cost savings of $300 million by the end of the third year.