The European Commission has cleared the proposed merger between Fyffes and its US banana rival, Chiquita Brands — removing any regulatory barriers to a deal being concluded before the end of the year.

Irish banana producer Fyffes yesterday announced it had agreed to a new merger proposal with Chiquita which would see it receive a smaller share of the newly-combined company.

Chiquita and Fyffes have submitted remedies to the European Union to deal with the likely impact that their proposed merger will have on competition.

Fyffes has granted its proposed merger partner Chiquita permission to talk to rival bidder, Cutrale-Safra.

The world’s leading investor advisory firm, Institutional Shareholder Services, has called for a postponement of a shareholder meeting aimed at approving the merger of Dublin-based banana distributor Fyffes and its US rival, Chiquita.

Brazilian juicemaker Cutrale, which is trying to block the proposed merger between Dublin-based banana distributor, Fyffes and US fruit giant Chiquita Brands, has said that Chiquita is misleading its shareholders over the potential growth benefits from such a merger.

Banana distributor Fyffes yesterday filed an investor presentation to the US Securities and Exchange Commission correcting what it refers to as misleading statements made in relation to its proposed merger with Chiquita.

Fyffes has said that an additional $20m (€15m) worth of synergies from its proposed merger with US fruit giant Chiquita have been identified.

Brazilian juice giant Cutrale is expected to return with an improved offer for US fruit producer Chiquita Brands, keeping the latter’s planned merger with Dublin-based banana distributor Fyffes in doubt.

The planned merger of Fyffes with its US banana-producing rival, Chiquita Brands is still widely expected to succeed, with one analyst suggesting a deal could be concluded earlier than anticipated by the end of October.

Shares in Irish banana giant Fyffes are down by almost 15% after its planned merger with Chiquita was thrown into doubt.

Shares in Dublin-based fruit giant, Fyffes plummeted over 20% at one point yesterday after its intended merger with Chiquita Brands was thrown into jeopardy, with the latter receiving an unsolicited $611m takeover offer.