DSM merger with Swiss Firmenich sets shares for best day in over 22 yrs
31/05/2022 08:27
** Shares in DSM DSMN.AS leap around 10% after the Dutch
specialty chemicals maker says it would merge with Swiss peer
Firmenich in a deal involving shares and cash urn:newsml:reuters.com:*:nL1N2XN09J
** The shares, among best performers on pan-European STOXX
600 .STOXX , are on track for their best day since late Feb.
2000
** After merger, DSM shareholders would own 65.5% of the new
Dutch-Swiss group, while current owners of Firmenich, which
operates in perfumery and flavours business, will own the rest
of the shares and will receive 3.5 billion euros ($3.76
billion) in cash
** "We believe the transaction will enable DSM to
substantially improve the quality of the Nutrition portfolio,"
says Credit Suisse
** Jefferies notes that the flavours and fragrances market
is already significantly consolidated, with the top five players
controlling over 75% of the market shares
** "Strategically, this (post DSM's planned/ongoing
Nylon divestment) represents the final shift in becoming
a pure play nutrition business," it adds, predicting limited
antitrust issues
** Separately, DSM also announced the sale of its
engineering materials subsidiary for 3.9 billion to private
equity firm Advent International and German chemicals company
Lanxess LXSG.DE urn:newsml:reuters.com:*:nL1N2XN09J
** Lanxess LXSG.DE shares jump over 11%
($1 = 0.9311 euros)
(Reporting by Sarah Morland)
((sarah.morland@tr.com
mailto:sarah.morland@thomsonreuters.com))