Dupont to Buy Denmark's Danisco for $5.8 Billion

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 [IFF 55.92 0.11 (+0.2%) ]. It would also solidify existing cooperation between the two companies in the field of technology for advanced bioethanol.

However the acquisition will reduce DuPont's 2011 earnings of $3.30 to $3.60 per share by a range of 30 cents to 45 cents per share, the company said.

The deal is structured as a public tender offer valuing Danisco's shares at 665 Danish crowns in cash per share.

Danisco's shares closed on Friday at 530 crowns, meaning the deal is at a 25 percent 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.

DuPont's shares closed on Friday down 22 cents at $49.76. The company has a market capitalization of about $45 billion.