Chiquita and Fyffes say proposed merger will save it more money than it expected

MarketsAssociated Press

Two weeks after rejecting a takeover bid out of Brazil, Chiquita says it's identified still more cost savings in a proposed tie-up with the Irish fruit company Fyffes.

Chiquita and Fyffes on Monday said that the new entity that they would form, the biggest banana company in the world, will generate $60 million in annual pre-tax savings. That is $20 million more than the companies had previously projected. The companies also increased their projections by about $10 million, to as much as $55 million, in expected annual earnings before interest, taxation and amortization.

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Earlier this month, Chiquita rejected a $611 million buyout offer from investment firm Safra Group and the Brazilian agribusiness and juice company Cutrale Group.

In March Chiquita and Fyffes said that they would combine to create a new company called ChiquitaFyffes PLC, based in Dublin, where Fyffes has its headquarters.

Chiquita Brands International Inc. is based in Charlotte, North Carolina.