Danisco and Kerry may be squaring up for ingredients clash

THE food ingredients industry is on alert for a €1bn bidding battle between global giants Danisco and Kerry Group, as the impending sale of the ingredients divisions of Chr Hansen and Degussa are set to tip the balance of domination in the industry.

But it is likely to cost Kerry Group between €700 million and €1 billion (the estimated values of the subsidiaries being put up for sale by Degussa and Chr Hansen, respectively) to acquire either of the companies which have come on the market.

Kerry has already spent €600 million on acquisitions in 2004, including €338 million for Quest Ingredients.

And the Tralee based company made a €20 million investment in China in January.

Danisco has also been busy on the acquisition trail in 2004, buying Rhodia Food Ingredients for €320 million.

It recently acquired a US enzyme company, Genencor International, for €322 million.