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3M Nears Agreement combines the Department of Food Safety with Neogen

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3M’s deal for Neogen will be structured as a Morris Reverse Trust, a tax-efficient way for companies to sell off a division.


Photo:

nicholas pfosi / Reuters

3M Corp.

MMM -1.42%

is about to reach an agreement to combine its food safety business with

Neogene Corp.

NEOG -0.20%

, an animal health and food testing specialist, according to people familiar with the matter.

The deal will value the combined company at $9.3 billion including debt and will go into effect on Tuesday, the people said. It will be structured as a Reverse Morris Trust, a tax-efficient way for companies to sell off a division, with Neogen’s management team running the combined company. According to these people, it will value the 3M unit at around $5.3 billion.

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https://www.wsj.com/articles/3m-nears-deal-to-combine-food-safety-unit-with-neogen-11639481112?mod=pls_whats_news_us_business_f 3M Nears Agreement combines the Department of Food Safety with Neogen

Ian Walker

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