Novozymes and Chr. Hansen have entered into a €25bn merger agreement to create a bio solutions major with annual revenues of €3.5 billion, expected to grow at a CAGR of 6-8% with an EBIT margin expected to reach 29% by 2025. Although we see the strategic merits, this comes across as an expensive deal. No wonder that Novozymes stock price is down by ~13.6% since the announcement while Chr. Hansen stock price is up ~21%, as of pixel time.