FYFFES SHAREHOLDERS WILL get a smaller share of the world’s biggest Banana supplier in a proposed tie-up between the Irish company and US fruit supplier Chiquita.
Investors were told this morning that the boards of the two companies, which officially announced they were in merger talks in March, had agreed Fyffes shareholders would get just over 40% of the combined $526 million (€413 million) operation.
Under a previous agreement investors in each company would get about half each of the combined business.
Fyffes executive chairman David McCann said merging the companies would be “strategic and compelling” with “synergies” that flowing from becoming the world’s top banana company.
Boards say yes
The board of the Dublin-headquartered company, which supplies branded bananas, pineapples, melons and other products, has recommended its shareholders go for the deal, assuming the High Court gave the revised plan the tick of approval.
Chiquita received a rival merger bid from Brazilian juice company Grupo Cutrale and investment firm Safra Group last month, throwing the merger with Fyffes into jeopardy.
The US business, which also supplies bananas and pineapples, as well as pre-prepared fruit and salad products, is still considering the South American consortium’s $614 million (€482 million) takeover bid.
Fyffes shareholders will get to vote on the deal in late October, four days after Chiquita’s investors make their decision.
READ: No jobs bonanza from banana merger
READ: Bananas and pineapples will be getting more expensive
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