In the biggest merger in Danish history, how is culture used as a strategic enabler?

In January of 2024, the largest merger in Danish history was completed between two icons of bioscience, Novozymes and Chr. Hansen. The new company, Novonesis, has the ambition to become the global leader in biosolutions and accelerate the mission of both companies to create a more sustainable society through combining their global expertise, technology, and capabilities. What is particularly unique about the merger – beyond its commercial ambitions – is the weight the executive team placed on company culture.

Through an in-depth mapping and analysis of the two existing company cultures, ReD Associates supported with the development of a bespoke culture integration strategy, process, and framework to help Novonesis decide which traits from each company should be kept and brought into the new culture, which should be left behind, and what needs to be built from scratch.

In the following case, we outline why culture is such an important strategic enabler in M&A situations looking at both formal and informal aspects of culture, the method for working strategically with culture during a merger and how to size aspects of company culture, and finally some key learnings and how to bring it to life.