Kerry Group looks likely to face stiff competition in its negotiation on a deal with DuPont’s nutrition division. International Flavors & Fragrances has emerged as a strong contender to purchase the business valued at $25bn (€22bn). It is unclear when a deal may be concluded but it could be as soon as the New Year, according to some sources. If IFF were successful, it would be its biggest ever acquisition. It makes flavours and fragrances for food, beverages, personal care and household products.
If Kerry Group is successful it is expected that a new company would be established with DuPont nutrition business spinning into the new company and maintaining at least 50.1% of the shareholding. Dupont is looking to execute the deal through a tax-efficient mechanism called a reverse Morris trust. It is understood that Kerry Group would own the other 49% and this would see existing Kerry shareholders swapping shares into the company on a one-for-one basis. While a deal may be imminent, it could take a year to close.