International Flavors & Fragrances (IFF) based in the US have beaten Kerry Group in the auction to buy DuPont’s nutrition division. The deal will create a $45bn company, twice the size of Kerry Group and the largest flavour company in the world. The deal which was agreed on Sunday, sees the flavours company pay $26.2bn for the DuPont business.

Kerry Group had been hopeful it would be successful as it would expand the group’s flavours offering. The DuPont unit will be spun off and merged using a Reverse Morris Trust structure that means DuPont’s shareholders will not have to pay tax on the deal. Under the terms of the agreement, DuPont shareholders will own 55.4% of the new combined company, while existing IFF shareholders will own the remainder.

Last year IFF agreed to acquire Frutarom Industries, another competitor of Kerry Group’s for $7.1bn as it aims to consolidate the food flavouring sector. The sector, which provides flavours for use in food and beverages is dominated by four multinational companies Givaudan, Firmenich, IFF and Symrise.

Shares in Kerry Group closed at €112.90 on Friday.