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Mark Stedman/Photocall Ireland

Fyffes owners are being offered less juice out of big banana deal

They would now get just over 40% from a merger with US company Chiquita.

FYFFES SHAREHOLDERS WILL get a smaller share of the world’s biggest Banana supplier in a proposed tie-up between the Irish company and US fruit supplier Chiquita.

Investors were told this morning that the boards of the two companies, which officially announced they were in merger talks in March, had agreed Fyffes shareholders would get just over 40% of the combined $526 million (€413 million) operation.

Under a previous agreement investors in each company would get about half each of the combined business.

Fyffes executive chairman David McCann said merging the companies would be “strategic and compelling” with “synergies” that flowing from becoming the world’s top banana company.

Fyffess plc Annual General Meeting. Pict Fyffes chairman David McCann Mark Stedman / Photocall Ireland Mark Stedman / Photocall Ireland / Photocall Ireland

Boards say yes

The board of the Dublin-headquartered company, which supplies branded bananas, pineapples, melons and other products, has recommended its shareholders go for the deal, assuming the High Court gave the revised plan the tick of approval.

Chiquita received a rival merger bid from Brazilian juice company Grupo Cutrale and investment firm Safra Group last month, throwing the merger with Fyffes into jeopardy.

The US business, which also supplies bananas and pineapples, as well as pre-prepared fruit and salad products, is still considering the South American consortium’s $614 million (€482 million) takeover bid.

Fyffes shareholders will get to vote on the deal in late October, four days after Chiquita’s investors make their decision.

READ: No jobs bonanza from banana merger

READ: Bananas and pineapples will be getting more expensive

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11 Comments
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    Mute Mick Jenkins
    Favourite Mick Jenkins
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    Sep 26th 2014, 9:33 AM

    I don’t think Fyffes get half the credit they deserve, imagine setting up annirishnconpany selling/marketing produce that’s impossible to grow in this country and becoming world leaders in it. And yet we’re not world leaders in umbrella making, seems odd…

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    Mute Patrick Bateman
    Favourite Patrick Bateman
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    Sep 26th 2014, 9:24 AM

    You might think I’m joking but Chiquita was voted one of the most evil companies in the world for how they have treated the Columbians, lawsuits to this day

    http://www.huffingtonpost.com/2013/09/22/chiquita-colombia-lawsuit_n_3971616.html

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    Mute Jason Bourne
    Favourite Jason Bourne
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    Sep 26th 2014, 9:46 AM

    No, I know your not joking. There are quite a few on here that are clueless so expect a few reds, like this one will.

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    Mute John Staunton
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    Sep 26th 2014, 10:49 AM

    I guess Colombia isn’t the best place for a banana business.

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    Mute Pauliebhoy
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    Sep 26th 2014, 9:03 AM

    Should tell them to get bent

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    Mute Pat Snack
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    Sep 26th 2014, 9:07 AM

    They’re Fyffes, not Apple.

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    Mute Pauliebhoy
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    Sep 26th 2014, 9:16 AM

    iKnow

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    Mute Sheik Yahbouti
    Favourite Sheik Yahbouti
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    Sep 26th 2014, 2:30 PM

    What a sad headline. I have yet to come across a “juicy” banana.

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    Mute Spilt Pint
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    Sep 26th 2014, 11:51 PM

    Yeah, it’s a bit strange.. Still, relax and kick back with a glass of orange milk to take your mind off it!

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    Mute Money Guide Ireland
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    Sep 26th 2014, 9:07 AM

    Fyffes share price going up since this was announced.

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    Mute David Burke
    Favourite David Burke
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    Sep 26th 2014, 9:14 AM

    Makes a lot more sense now. Fyffes wasn’t woth half and the Mexicans were offering cash otherwise. Could be good for Ireland to have a huge company based out of here.

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