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Danish enzyme producers Chr. Hansen and Novozymes have entered into an agreement to merge, with the aim of creating a global leader in biosolutions. Chr. Hansen produces ingredients for the food, pharmaceutical and agricultural industries, including cultures, enzymes and probiotics, while Novozymes describes itself as “the world's largest provider of enzyme and microbial technologies”. Ester Baiget, president and CEO of Novozymes, said: “The combination of two strategically complementary companies with a shared purpose and advanced capabilities will show the world the true power of biosolutions”. She added: “Novozymes and Chr. Hansen share the strong conviction that our combined scale, know-how, commercial strengths and innovation excellence will drive value for our shareholders, customers and society at large by providing the sustainable solutions the world so urgently needs”. The deal will see Chr. Hansen free-float shareholders receive 1.53 new shares in Novozymes (each nominally worth DKK 2, or approximately $0.28) for each individual Chr. Hansen share, implying a premium of 49% to the Chr. Hansen shares' closing price on 9 December. Offering a broad “biological toolbox,” the combined company is expected to have annual revenue of approximately €3.5 billion. With around 10,000 employees, the biosolutions group will operate a global network of 23 manufacturing sites and 38 R&D and application centres. Novo Holdings is the largest shareholder in both Novozymes and Chr. Hansen. Chairman Lars Rebien Sørensen said: “The two companies are a perfect match. Chr. Hansen with its expertise in microbials and Novozymes with its background in enzymes.” CEO Kasim Kutay added: “As long-term shareholders in both Novozymes and Chr. Hansen, we are in full support of the plans to combine the two companies. Due to our strong belief in the commercial, strategic and long-term financial merits of this transaction, we are willing to accept a less favourable exchange ratio for our shares in Chr. Hansen than what is offered to other shareholders.” Upon completion of the merger, Baiget will assume leadership of the combined group as CEO, while Novozymes’ current finance chief, Lars Green, will be CFO. Novozymes' free-float shareholders will own 44% of the total share capital, Chr. Hansen's free-float shareholders 34% and Novo Holdings 22%. The merger is contingent on approvals via extraordinary general meetings of the two companies, as well as regulatory approvals. The deal is currently expected to be completed in the fourth quarter of next year or first quarter of 2024.