Kerry Group has lost out in a race to acquire the nutrition division of DuPont, the US conglomerate. On Sunday, DuPont announced that it had struck a $26bn (€23.5bn) deal with International Flavors & Fragrances (IFF), a New York-based company.

The deal will create a $45bn (€40bn) company, twice the size of Kerry Group and the largest flavour company in the world. Under the terms of the agreement, DuPont will spin out its nutrition division to merge with IFF using a Reverse Morris Trust structure, which will allow DuPont’s shareholders to avoid paying tax on the deal.