Fyffes pressing ahead with Chiquita merger plans

Wednesday 13 August 2014 11.39
Fyffes is putting merger plans in place despite moves by a Brazillian investment firm to buy out Chiquita
Fyffes is putting merger plans in place despite moves by a Brazillian investment firm to buy out Chiquita

Fyffes has announced to the stock exchange that it's circulating the relevant documentation to shareholders in relation to the proposed merger with Chiquita.

The announcement comes despite the offer of the Cutrale Group and a Brazilian investment firm, Safra Group, to buy Chiquita - a move that would put the Fyffes deal in jeopardy.

Shares in Fyffes have been trading turbulently since the news - they closed 14% lower yesterday and dropped marginally again today.

Fyffes said its shareholders would receive a registration statement, notices and forms of proxy for two special meetings of shareholders to be held on September 17th.

They will also be furnished with profit forecasts from both companies.

It was announced in March that Fyffes had entered into a merger agreement with Chiquita.

On completion of the merger, Chiquita shareholders would own 50.7% of ChiquitaFyffes with Fyffes shareholders owning the remaining 49.3%.

The new Chiquita-Fyffes firm was expected to be domiciled in Ireland for tax purposes. 

The US Congress is aggressively trying to curb so-called inversions, in which US corporations move their tax domiciles abroad to countries with a lower tax rate.