US-based International Flavors & Fragrances (IFF) has revealed that the shareholders of Israeli firm Frutarom have approved the proposed merger of the two companies.

IFF noted that 94.6% of Frutarom stakeholders have voiced approval for the planned merger.

IFF agreed to acquire Frutarom in May through a cash and stock transaction valued at nearly $7.1bn, which also included the assumption of Frutarom’s net debt.

"Together, IFF and Frutarom will become a global leader in taste, scent and nutrition, with a broader customer base, more diversified product offerings and increased market penetration."

IFF chairman and CEO Andreas Fibig said: “We are pleased that Frutarom shareholders have approved the combination with IFF, marking another milestone on our path to unlock the value creation potential of the combined company.

“Together, IFF and Frutarom will become a global leader in taste, scent and nutrition, with a broader customer base, more diversified product offerings and increased market penetration.

“Through our integration planning work, we continue to be confident in the opportunities that lie ahead and the ability of the combination to accelerate profitable growth, enhance free cash flow and generate greater returns for IFF shareholders.”

Frutarom’s shareholders are set to receive $71.19 in cash and 0.249 of a share of IFF common stock for each currently held share in Frutarom following the deal’s completion.

The completion of the transaction is subject to clearance by the relevant regulatory authorities and other customary closing conditions.

It is expected to close in the fourth quarter of this year.

Frutarom president and CEO Ori Yehudai said: “We appreciate the support from our shareholders as this transaction represents a landmark moment for Frutarom, delivers significant and immediate cash value to our shareholders and provides an opportunity to participate in the substantial potential upside of the combination.

“We continue to work closely with IFF’s management team to ensure the successful completion and integration of our two great companies, and we look forward to driving growth by capitalising on the best of both organisations.”