Dive Brief:
- The European Union won't stand in the way of the proposed merger between Chiquita and Fyffes.
- Regulators from the European Commission required only one substantial concession: That Fyffes end an exclusivity deal with ocean carrier Maersk and that no such clauses be used in shipping contracts in the future.
- The Commission ruled that European consumers would not be harmed by the merger, which would create the largest banana company on earth, because there would be adequate competition from other companies.
Dive Insight:
It was beginning to look like Chiquita and Fyffes would never get any good support in their plans to marry. Between actions by American politicians to make the deal less tax-advantageous, and the comments by shareholder advocates badmouthing the proposed merger, the stars seemed aligned against the tie-up.
Now, suddenly, the banana companies have cleared a major hurdle. And Chiquita shareholders must now decide if the competing bid by Brazil's Safra Group and Cutrale Group represents a better, not just a safer, offer.