Rther than agreeing with Chiquita's merger with Irish competitors Fyffes, the American banana producer's shareholders preferred a deal with a Brazilian buyer - despite the merger finally being approved by the competition authorities.
742 million dollars offer
The Chiquita-Fyffes merger would have created the largest banana company in the world. Both companies had reached an agreement, but the Chiquita shareholders scuppered the deal on Friday.
That is why Chiquita turned its attention to a Brazilian group, Cutrale-Safra, which had previously tried to buy the company on several occasions. The bids were categorically met with a refusal, even its last-ditch 742 million dollar bid (584 million euro) on Thursday evening.
But as soon as the shareholders refused to acknowledge the deal with Fyffes, Chiquita was forced to turn to Cutrale-Safra and restart negotiations. On Sunday, the last day the 742 million dollar bid was valid, a deal has been reached.
Chiquita shareholders preferred the Brazilian deal as it brings in more money quickly. Chiquita's board wanted a deal with Irish Fyffes in order to take advantage of the advantageous Irish tax rates.