Danish $22 bln enzyme M&A is costly bet on growth

Chr Hansen Holding A/S

12/12/2022 11:55

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Pierre Briancon
       LONDON, Dec 12 (Reuters Breakingviews) - Novozymes will
absorb smaller domestic rival Chr. Hansen. The 38% premium
dwarfs expected synergies from the deal. And Novo Holdings, the
biggest shareholder in both groups, will retain majority voting
rights. Novozymes investors look to be paying too much for
future growth.        
    Full view will be published shortly.
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    CONTEXT NEWS
    Danish food ingredients and enzymes makers Novozymes and
Chr. Hansen said on Dec. 12 in a joint statement that they would
merge to form a company with annual revenue of around 3.5
billion euros.
    Under the deal’s terms, Novozymes is offering a 38% average
premium for Chr. Hansen shares.
    Novo Holdings, the company managing the wealth of the Novo
Nordisk foundation and the main shareholder of both companies,
will remain the controlling shareholder of Novozymes after the
deal is completed.
    Novozymes Chief Executive Ester Baiget and Chief Financial
Officer Lars Green will keep their jobs in the merged company.
    Shares of Novozymes were down 15% at 368 Danish crowns as of
1042 GMT, while Chr. Hansen shares were up 15% at 513 Danish
crowns.
 (Editing by George Hay, Pranav Kiran and Oliver Taslic)
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