Royal DSM is to merge with Swiss fragrance company Firmenich to create DSM-Firmenich.
The Dutch company said DSM shareholders will own 65.5% of the merged company following the deal while Firmenich shareholders will hold the remaining 34.5%.
The deal implies an enlarged market capitalization of €25.3 billion based on a share price of €145.65.
The merger will bring together Firmenich's perfumery and taste businesses with DSM's health and nutrition portfolio.
Completion of the deal and listing on Euronext Amsterdam is slated for the first half of 2023.
DSM-Firmenich will have dual headquarters in Switzerland (Kaiseraugst) and the Netherlands (Maastricht).
DSM chairman Thomas Leysen will become chairman of DSM-Firmenich, with Firmenich Chairman Patrick Firmenich becoming vice-chairman.
DSM co-chief executives Geraldine Matchett and Dimitri de Vreeze will be named co-CEOs of the new company.
“The merger of DSM-Firmenich will further accelerate innovation for the industry and generate new growth opportunities for customers. It will form a new global-scale partner to serve the food and beverage industry, combining DSM's Food & Beverage and Firmenich's Taste & Beyond businesses,” the companies said in a statement.
“Firmenich's world-leading global Perfumery and Ingredients business will expand further into Beauty through the addition of DSM's Personal Care & Aroma business. These new combined businesses will be joined by DSM's high-performing Health, Nutrition & Care and Animal Nutrition & Health businesses,” they added.
