Business Irish

Friday 19 September 2014

Fyffes and Chiquita revise €1bn merger deal

Published 30/04/2014 | 02:30

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Bananas from Costa Rica are seen for sale at the Eastern Market February 25, 2014, in Washington, DC.       AFP PHOTO/Paul J. Richards        (Photo credit should read PAUL J. RICHARDS/AFP/Getty Images)
Fyffes and Chiquita have revised their plans to merge

SOME conditions of the $1bn (€724m) merger between Fyffes and Chiquita have been amended, recognising the jurisdiction of the European Commission over the deal.

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The companies said that they had previously understood that the planned merger would not meet the mandatory notification thresholds under EU merger regulations.

That meant the European Commission watchdog would only have had jurisdiction to examine the tie-up if the case was referred to it by a member state, or if the EU member states with jurisdiction to review the transaction did not object.

However, the two companies have now concluded that their merger satisfies the mandatory notification thresholds under EU merger regulations.

The Irish Takeover Panel has also decided to grant a derogation from a rule that would have delayed the merger had a Phase II probe of the takeover by Chiquita of Fyffes been launched by the European Commission.

The firms hope to complete the deal by the end of this year.

Irish Independent

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