With a shareholder vote on the matter just three weeks' away, Chiquita Brands International (NYSE: CQB) and Fyffes Plc (ESM: FFY) have identified an additional US$20 million in pre-tax cost synergies that could be gained from a merger, mostly due to European and Mediterranean shipping benefits.

The amount takes total synergies up to US$60 million by the end of 2016, of which 50% are expected to be gained within the first year.

"As a result of our diligent and thorough integration planning efforts, Chiquita and Fyffes have identified an additional $20 million of synergies that will allow ChiquitaFyffes to deliver even more value for our shareholders and result in a combined company with stronger earnings power," said Chiquita chief executive officer Ed Lonergan and Fyffes executive chairman David McCann in a joint statement.

"Chiquita and Fyffes remain committed to the transaction and are continuing to work together to complete the Combination as expeditiously as possible."

Separately, Chiquita announced it had found an additional US$14-16 million in savings from efficiency initiatives by replacing its U.S.-Gulf shipping rotation with larger, more efficient vessels.

The announcement was made today as Fyffes also announced a 36.5% year-on-year jump in EBITDA for the first half to €31.5 million (US$41.45 million).

The result now means the group has raised its EBITA target range for the full year from €30-35 million (US$39.5-46 million) to €38-42 million (US$50-55 million).

The announcement gives more weight to the merger, which has been under threat from an aggressive takeover attempt from Brazil's Cutrale Group and Safra Group for US$611 million. After the bid was rejected by the Chiquita board mid-August, the Brazilians announced they would pitch directly to shareholders with proxy materials via their subsidiary Cavendish Group.

"Fyffes is pleased Chiquita recently rejected the unsolicited offer from the Cutrale Group and the Safra Group and reaffirmed its recommendation to its shareholders to vote to approve the definitive merger agreement between Fyffes and Chiquita," Fyffes said in a release.

"Both companies have sent out documents to shareholders ahead of shareholder meetings scheduled for 17 September 2014. The EU Commission’s Phase I merger clearance review is provisionally expected to end on 19 September 2014."

A coordinating group for Latin American banana worker unions, and advocacy NGO Banana Link, both raised serious concerns about what such a takeover would mean for the progress made in worker rights with Chiquita over the course of decades, given Safra's poor record at home on social fronts.

On August 23, several Chiquita executives purchased shares in their company, including chief operating officer Brian Kocher (7,447 shares), executive vice president Kevin Holland (6,324 shares), executive vice president Manuel Rodriguez (1,972 shares) and executive vice president James Thompson (5,368 shares).

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