US/Brazil: Chiquita bows to Brazilian takeover

Just days after Chiquita announced that its shareholders have rejected the company’s plans to acquire Ireland-based Fyffes, the banana giant says it has entered into a definitive agreement to be purchased by a pair of Brazilian companies.

Reports say Cutrale and Safra will acquire Chiquita for about $1.3 billion; Chiquita’s board of directors unanimously approved of the agreement.

The transaction will combine the banana firm with Cutrale, a leading agribusiness conglomerate.

Chiquita had originally planned to take over the Irish company and create the world’s largest banana firm. While authorities had cleared the deal, it received some criticism for Chiquita’s plans to relocate its tax bracket abroad in a transaction known as an inversion merger.

Full content: Market Watch

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