Danisco in takeover talks

Denmark's Danisco has signed an agreement with France's Rhodia to negotiate exclusively for the takeover of Rhodia's food ingredients business, excluding the company's food phosphates business.

According to a statement, the sale marks the first step in Rhodia's plans to recover 700 million Euros from divestitures by the end of 2004.

Rhodia's food ingredients business, which generated sales of 211 million Euros in 2003, is a global supplier of cultures, natural texturants, and food protection solutions to food processing companies.

The primary focus areas of the business are dairy, dessert, beverage and health products, meat, and savoury and bakery products and will be integrated into Danisco's global product portfolio.

The transaction is expected to be finalised within the second quarter of 2004.