Media: Chr. Hansen's exit from Russia was expected after the final merger with Novozymes
Source: The DairyNews
On March 30, 2023, shareholders of Novozymes and Chr. Hansen approved the proposed merger, paving the way for the creation of a leading global biosolutions entity.
On December 13, 2023, the companies announced the future name of their combined entity as 'Novonesis.' In the first three months of the 2024 financial year, Novonesis reported a 4% organic sales growth against a strong comparator.
Meanwhile, Danish media reported that as early as 2022, Novozymes chairman Jørgen Buhl Rasmussen had stated that Novozymes "will neither sell nor supply products to Russia and Belarus." Consequently, following the completion of the merger, the decision for a definitive exit from the Russian market was expected.
"While the merger was not finalized until the end of January, we operated as two independent companies. Now we are spending time understanding what we are doing. That is our main priority," Esther Baiget, head of the merged group, told the media outlet MarketWire after the company's annual general meeting last Tuesday.
Siem de Jong, chairman of the board of directors, also noted that Chr. Hansen's presence in Russia is a complex issue that needs to be resolved.
"Novonesis is a new business, and it's important for us to understand what Chr. Hansen's business in Russia is. The war between Russia and Ukraine is a human tragedy. Regarding Russia, we need to ensure the safety of employees… <...> If everything is done correctly, it will take some time," he said.
Last week, it was announced that the company's shareholders decided to cease Chr. Hansen's operations in Russia. Analysts estimate that the company holds about 45% of the market for dairy product cultures.
Meanwhile, Danish media reported that as early as 2022, Novozymes chairman Jørgen Buhl Rasmussen had stated that Novozymes "will neither sell nor supply products to Russia and Belarus." Consequently, following the completion of the merger, the decision for a definitive exit from the Russian market was expected.
"While the merger was not finalized until the end of January, we operated as two independent companies. Now we are spending time understanding what we are doing. That is our main priority," Esther Baiget, head of the merged group, told the media outlet MarketWire after the company's annual general meeting last Tuesday.
Siem de Jong, chairman of the board of directors, also noted that Chr. Hansen's presence in Russia is a complex issue that needs to be resolved.
"Novonesis is a new business, and it's important for us to understand what Chr. Hansen's business in Russia is. The war between Russia and Ukraine is a human tragedy. Regarding Russia, we need to ensure the safety of employees… <...> If everything is done correctly, it will take some time," he said.
Last week, it was announced that the company's shareholders decided to cease Chr. Hansen's operations in Russia. Analysts estimate that the company holds about 45% of the market for dairy product cultures.
