DSM and Firmenich’s merger plans have taken a major leap forward with the announcement that the companies have obtained unconditional competition clearance from the European Commission.
This follows the 16 February clearance by China’s State Administration for Market Regulation (SAMR), meaning DSM and Firmenich have now achieved competition clearance in nine out of the ten jurisdictions required.
DSM, a Dutch-Swiss nutrition, health and biosciences company, and Swiss perfumery player Firmenich made public their intention to merge in May last year, officially making an exchange offer in November.
According to the companies, the Competition Commission of India (CCI) is the final competition clearance pending.
To accommodate the CCI's decision, the acceptance period, which began on 23 November 2022 and was initially expected to run until 31 January, was (on 23 January) extended until no later than end of 11 April.
Gilbert Ghostine, the CEO of Firmenich, who is expected to retire from his position upon completion, has called the merger “a transformational moment for the history of both businesses”.
Once merged, DSM-Firmenich will comprise four businesses: Perfumery & Beauty; Health, Nutrition & Care, which covers the dietary supplements industry; Food & Beverage/Taste & Beyond; and Animal Nutrition & Health.
It will be co-headquartered in Kaiseraugst, Switzerland and Maastricht in the Netherlands.