A PLAN BY Chiquita and Fyffes to merge and create the world’s largest banana company looks set to fall apart after it was rejected by Chiquita’s shareholders.
The plan first touted about six months would have seen the two companies merge into a €413 million global produce powerhouse based in Dublin.
Fyffes, which is over 125 years old and headquartered here since the early 20th century, currently employs 2,500 full time workers in Ireland.
The merger now looks to be scuppered after a shareholder meeting in Charlotte, North Carolina rejected the green light given by the company’s board.
The deal was threatened when two rival Brazillian firms, Cutrale and Safra, came in with an all-cash bid to buy Chiquita. It now looks likely that the US-based company will continue negotiations with the Brazillian firms.
Shares in Fyffes have dropped by 8% in the last few hours since the news from Charlotte was released.
Chiquita President and CEO Edward Lonergan said in a statement that while the company was convinced Fyffes would have been a strong merger partner, the companies “will now go forward as competitors.”
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