LONDON (Alliance News) - Fyffes PLC and Chiquita Brands International Inc Tuesday said they are working to obtain Phase I clearance from the European Commission for their merger by October 3.
"Fyffes and Chiquita confirm that they are in discussions with the European Commission regarding possible limited commitments with a view to obtaining clearance of their previously-announced merger transaction by the Commission in its initial phase I review period," the companies said in a statement.
"The proposed commitments, if adopted, are not expected to have a material impact upon the commercial rationale for the transaction," the two banana companies said.
According to the statement, the European Commission's Phase I review timetable is automatically extended by 10 working days to October 3.
"While there can be no assurances, Fyffes and Chiquita remain of the view that there is a good prospect that their proposed transaction can be cleared by the European Commission during its Phase I review," the companies said.
Last week, Chiquita said it had signed a confidentiality agreement with rival bidders the Cutrale Group and the Safra Group.
Under the agreement, which Chiquita said was similar to its agreement with Fyffes, Chiquita will allow Cutrale/Safra to conduct due diligence, which includes giving access to a data room and its management team, so that they can make a definitive offer for Chiquita.
Despite this, Chiquita reiterated last week its recommendation that shareholders vote in favour of the Fyffes transaction. Both Fyffes and Chiquita have scheduled shareholder meetings to vote on the proposed transaction on October 3.
Fyffes shares were Tuesday quoted up 2.1% at 77.36 pence.
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