Dive Brief:
- Chiquita Brands and Fyffes, which are seeking to combine in a $526 million deal, say they have proposed concessions to European regulators that should clear the way for them to merge. Details of the proposal were not released.
- News of the proposed concessions comes as the banana companies struggle to win shareholder backing for their tie-up.
- The EU extended the deadline for its decision to Oct. 3 from Sept. 19.
Dive Insight:
There's no saying for sure what concessions the two companies have proposed, but it's likely they include promises to unload units in places where the two companies already operate ... particularly Fyffes' home nation of Ireland.
Regardless, Chiquita and Fyffes face a much tougher hurdle than regulators. Shareholder advisor services Institutional Shareholder Services and Glass Lewis have both urged shareholders to reject the merger and instead support an offer by Cutrale Group and Safra Group to acquire Chiquita.