Chiquita terminates Fyffes merger, in discussion with Cutrale/Safra Group
Chiquita terminates Fyffes merger, in discussion with Cutrale/Safra Group
Chiquita Brands International Inc. announced that its shareholders have not approved the revised transaction agreement with Fyffes plc. In early March, the two companies announced plans for a $1 billion merger, but at this point the transaction agreement has been terminated.
Chiquita now expects to enter into discussions with the Cutrale/Safra Group regarding a revised offer to acquire all of the outstanding stock of Chiquita for $14.50 per in cash. This is an increase from the previously rejected offers of $13 and $14 per share.
"We appreciate the consideration and perspectives of all Chiquita shareholders who participated in this process," Edward F. Lonergan, president and chief executive officer of Chiquita, said in a press release. "Given today's results, we have determined to terminate the agreement with Fyffes and to engage with Cutrale/Safra regarding its revised offer."
Chiquita noted that no definitive agreement with Cutrale/Safra has been reached and there can be no assurances that any transaction will result from these discussions. The company said it does not expect to update the market with any further information unless and until the board has reached a final decision.
"I want to thank David McCann and the entire Fyffes team for their efforts throughout this process," Lonergan said in the release. "While we are convinced they would have been a strong merger partner, we will now go forward as competitors. We would also like to express our gratitude to Chiquita's employees for their hard work and dedication on behalf of Chiquita and our customers."