(BDCi) – A bid by Brazil’s Cutrale and Safra groups was rejected by Chiquita, who said it has decided to stick with the European fruit seller Fyffes.
Chiquita found the Brazilian companies’ bid of $611 million to be “inadequate.”
By merging with the Irish company Fyffes, Chiquita can avoid higher U.S. taxes and moved its headquarters to Ireland.
Other U.S. companies are also looking at the option, which would mean loss of revenue for the government.
Despite Chiquita’s statement, the Brazilian companies still see their offer as the “more favorable” one.
The world’s banana market is controlled by four firms: Chiquita, Dole Food Company, Fresh Del Monte and Fyffes.