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Can DSM Firmenich merger deliver on its synergistic promise?
DSM and Firmenich’s mooted 2023 ‘Merger of Equals’ will create a nutrition, food ingredients and fragrances behemoth with 277 years of collective business experience and a combined annual revenue pushing towards €12 billion (£10.2bn).
The deal rivals that of the 2021 €20bn+ (£17bn+) merger between International Flavors & Fragrances (IFF) and DuPont’s Nutrition and Biosciences division.
The Dutch and Swiss firms have spoken much of the synergies they predict will save at least €175 million (£149m), while not cutting too many of 28,000 jobs and keeping annual R&D spends higher than most rivals at 9.3% of revenue – about €700m (£145m).
By comparison, Givaudan spends 8.4% of its revenues on R&D, IFF/DuPont 6.1% and Symrise 5.9%.