Fyffes and Chiquita to revise terms of merger
Irish company Fyffes and US firm Chiquita are to revise terms of their merger.
The US company is to increase ownership from 59.6pc from 50.7pc in their $526m tie-up.
In a statement, the two firms said that that Fyffes shareholders are now expected to own approximately 40.4% of the proposed merged ChiquitaFyffes.
The proposed merger will see the company then having a 14pc of the $7bn global banana market.
Fyffes shares moved higher in Dublin trade this morning.
"The combination of Chiquita and Fyffes is strategic and compelling, creating the number one banana company globally, with synergies that can only be achieved by these companies coming together," David McCann, Fyffes executive chairman said in today's statement.
"This revised binding agreement, along with the additional synergies recently announced, reinforces our conviction that the Combination is the value-maximising opportunity for both companies' shareholders," he added.
"We are pleased with the increased value that these enhanced terms for Chiquita bring to our shareholders," Chiquita's chief executive Officer Ed Lonergan said.
"The Fyffes transaction is a natural strategic partnership that brings together two complementary companies to create a combined company that is better positioned to succeed in a highly competitive marketplace, while driving strong performance and value for shareholders as well as immediate benefits for customers and consumers worldwide," he stated.
The company is also talking to Brazilian juice maker Grupo Cutrale and Safra Group, the banking and investment group, on their rival $611m unsolicited bid.