Chiquita and Fyffes Revise Their Merger Agreement
The boards of Chiquita and Fyffes, the fruit importer from Ireland have agreed to revise their merger deal.
The alterations that are proposed in the revised deal will give the shareholders of Chiquita a greater stake in a company which will become the biggest supplier of bananas in the world.
On Friday both the companies said that Chiquita Brands International Inc. shareholders will own almost about sixty percent stake in the joint company as per the revised deal. This will be an increase from about 51 percent that they were getting earlier. Shareholders of Fyffes PLC will now see their stakes go down to approximately forty percent from above a forty nine percent stake.
Though the revised deal has been agreed upon by the board members of both the companies but it has to get approval from the shareholders by taking their vote on the issue.
The executive chairman of Fyffes, David McCann said the combination of the two companies is "strategic and compelling".
Last March, Chiquita and Fyffes had made an announcement regarding their agreement. Chiquita has its base in Charlotte, North Carolina. The joint new company will be based in Dublin, where Fyffes has its headquarters.
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