US chemicals group DuPont said on Sunday it will buy Danish food ingredients and enzymes firm Danisco for $5.8bn (€4.47bn) to boost its position in the fast-growing food sector.
The cash deal would enable DuPont to enter a niche in the chemical industry -- food additives -- long dominated by smaller rival International Flavors and Fragrances.
It would also solidify existing co-operation between the two companies in the field of technology for advanced bioethanol.
Kerry Group is also a major player in the food ingredients sector.
The deal is structured as a public tender offer valuing Danisco's shares at 665 Danish crowns per share.
Danisco's shares closed on Friday at 530 crowns, meaning the deal is at a 25pc premium to its closing share price.
"The board of directors of Danisco has unanimously resolved that it intends to recommend that shareholders accept the offer," Danisco said in a statement. (Reuters)