DSM, Firmenich Close Merger Deal Weeks After Antitrust Raid (1)

Chemicals company Royal DSM NV and Swiss ingredients maker Firmenich International SA have completed a merger to become the largest producer of flavors and fragrances, weeks after European regulators conducted raids over concerns that Firmenich and others colluded on price.

The resulting company has an equity value of about €35 billion ($39 billion), just under half of which came from Firmenich. It’s the biggest deal in the industry since IFF agreed to buy DuPont’s nutrition business for $26 billion in 2019.

The wave of mergers and acquisitions has been driven by consumer giants like Nestle SA and Danone wanting ingredients ...