21 December, 2023 19:43:45 IST 
The European Commission has conditionally approved the merger between Danish biotechnology companies Novozymes and Christian Hansen, subject to some key divestments.
The executive arm of the European Union said that, as part of the merger, Chr. Hansen has offered to divest its lactase distribution business, while Novozymes would let go of its lactase production facility. In addition, Christian Hansen would divest its project to manufacture lactase, the commission said.
Ireland based food & beverages major, Kerry Group, has entered into a definitive agreement to acquire the lactase enzyme business of the two companies on a carve-out basis. Kerry’s acquisition is subject to Commission approval. This business is assessed at a total consideration of Euro 150-mn, subject to routine closing adjustments.
Novozymes, which makes enzymes for household products, food & beverages and biofuels, and Chr. Hansen, an enzyme maker for the food sector, agreed to merge in December last year in an all-share $22-bn tie-up. The European Commission found that the companies’ plan as originally intended would have reduced competition in the lactase enzyme market.
The deal, the largest merger in Denmark, would create a global ingredients giant.
Ms. Margrethe Vestager, executive vice-president in charge of competition policy of the European Commission, said, “Novozymes is an established biotech player, which manufactures industrial enzymes, including lactase. This is a concentrated area in which Chr. Hansen is an imminent competitor. The divestiture of Chr. Hansen’s lactase activities together with production assets will ensure that its pipeline project can come to market and preserve competition in the highly innovative biotech sector.”
With the clearance from the European Commission, Novozymes and Chr. Hansen have announced their new name as a merged business: Novonesis.
Ms. Ester Baiget, President and CEO of Novozymes, said, “Novonesis reflects where we came from, what we can achieve, and what we will become together. We are dedicated to harnessing the transformative potential of biology. Building on our legacy of developing innovative BioSolutions, we stand ready to unlock unprecedented opportunities. We are here to start an era of BioSolutions. That is why we have chosen to call our new company Novonesis which means ‘A new beginning’.”
“The new name will be used and gradually implemented once the proposed combination is completed. Until final merger control approvals are received, and the proposed combination completes, Novozymes and Chr. Hansen operate as completely separate companies,” the companies informed.
