22:26 GMT +317 January 2020
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    The International Flavors and Fragrances corporation, which makes flavors and fragrances for food, beverages, personal care and household products, has struck the biggest ever deal in its history.

    On Sunday, the IFF company said it will merge with E. I. du Pont de Nemours and Company's $26.2 billion nutrition unit in a deal that will establish a new consumer giant with a total value of $45.4 billion, Reuters reported.

    “We conducted a very thorough process leading us to the selection of IFF as the preferred strategic partner for N&B”, DuPont Executive Chairman Ed Breen said. “Together, we will create a leading ingredients and solutions provider with a broader set of capabilities to meet our customers’ evolving needs”, IFF's Chief Executive Officer Andreas Fibig added.

    Under the deal, DuPont shareholders will hold 55.4% of the shares of the new company, while 44.6% of the shares will be owned by IFF shareholders, IFF said in a statement.

    According to International Flavors and Fragrances corporation, the merger agreement has received unanimous approval from both boards.

    A one-time cash payment of $7.3 billion will be transferred to DuPont, Reuters said, citing IFF.

    After the deal is finished, IFF expects cost savings of $300 million by the end of the third year.

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    company, merger, United States
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