Danish food ingredients and enzymes makers Novozymes (NZYMb.CO) and Chr. Hansen (CHRH.CO) have agreed to merge, the two companies said in a joint statement on Monday.
While both companies’ main business is producing enzymes, Chr. Hansen focuses more on enzymes and microbials for the food sector, while Novozymes’ largest business areas include enzymes for household products, food and beverages and biofuels.
Following an extended opening auction at the Copenhagen blue chip index on Monday morning, shares in Novozymes dropped 7.5%, while Chr. Hansen shares jumped more than 33%.
“The combination of two strategically complementary companies with a shared purpose and advanced capabilities will show the world the true power of biosolutions,” Chief Executive of Novozymes, Ester Baiget, said in the statement.
As part of the merger, which is expected to be completed in the fourth quarter of 2023, Chr. Hansen will be dissolved.
Free-float shareholders in Chr. Hansen will receive 1.53 new shares in Novozymes, each nominally worth 2 Danish crowns ($0.2830), for every share in Chr.Hansen, implying a premium of 49% to the Chr. Hansen shares’ closing price on Friday.
The combined group will have an annual revenue of around 3.5 billion euros ($3.68 billion) and reach annual revenue synergies upwards of 200 million euros, the company said.
