DuPont Gets China's OK for $5.9 Billion Danisco Bid
Chinese regulators have approved DuPont's $5.9 billion bid for Danish food ingredients and enzymes producer Danisco, the U.S. chemicals giant said.
Clearance by China, where several of Danisco's assets are located, was the last major regulatory hurdle after U.S. and European Union regulators approved the friendly takeover, announced in January. The deal has yet to win approval from Danisco shareholders.
DuPont's chief financial officer, Nick Fanandakis, declined to say how many Danisco shareholders have accepted the deal so far, though last month the company admitted it only had a small percentage on board. The current tender offer expires April 29. Fanandakis said he is "confident" DuPont will get approval from Danisco shareholders before then.
"There wasn't much incentive to tendering shares prior to the acquiring company receiving all the regulatory approvals," Fanandakis told Reuters. "Now we have that. I would see the acceleration of tendering shares."
Fanandakis would not comment on what DuPont would do if it does not receive at least 90% Danisco shareholder approval by April 29.
On March 30, DuPont extended its 665 Danish crowns ($128.9) per share offer for Danisco to April 29 after Danisco shareholders with only 6% of the stock had accepted the bid.
DuPont, which wants Danisco's technology as part of a bigger push into the foods business, needs acceptance at least 90% of Danisco shares to support the deal in order to carry out the transaction and delist Danisco from Denmark's stock exchange.
Acceptance of the deal by Danisco shareholders has been sluggish pending regulatory approvals, and some Danisco stockholders have called on DuPont to sweeten its offer.
But DuPont Chief Executive Ellen Kullman said on April 5 that the U.S. company was confident that Danisco shareholders would follow their board's recommendation and accept the offer, which would enable the transaction to be completed this month.
DuPont has repeatedly said it will not raise its offer.
It is "premature" to say what DuPont will do with the Danisco brand name and assets, said, Fanandakis told Reuters.
