LONDON (Alliance News) - Fyffes PLC and Chiquita Brands International Inc said Friday that their proposed merger has been cleared by the European Commission.
"This regulatory clearance represents a significant milestone for our proposed transaction to create the number 1 banana company globally," said Ed Lonergan, Chiquita's chief executive officer, and David McCann, Fyffes executive chairman, in a joint statement.
The two companies said that the clearance reaffirmed their confidence in the combination of the business. The deal is still subject to approval from both of the companies shareholders, at general meetings scheduled for October 24, and the High Court of Ireland.
The proposed merger has been under attack from rival bidder Cutrale Group and the Safra Group.
After Fyffes and Chiquita approved a revised agreement last Friday to raise Chiquita's stake, Cutrale-Safra said it would move forward with due diligence on Chiquita and would make a bid as soon as possible. Cutrale-Safra said the revised ChiquitaFyffes deal values the combined company at USD11.82 per share, below the USD13 all cash proposal made by Cutrale-Safra.
Shares in Fyffes are trading down 3.0% at 81.00 pence Friday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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