Chiquita Brands International (NYSE: CQB) today announced it has entered into a confidentiality agreement with the Safra Group and the Cutrale Group, opening the door for an acquisition. 

The news comes shortly after Chiquita backed down from its firm stance against the proposed merger from the two Brazilian companies, giving them the green light to conduct focused due diligence and present a final offer.

If the Brazilian companies' US$611 million offer - which was made through their subsidiary Cavendish Group - is successful, it could scuttle the fruit giant's merger with Ireland's Fyffes Plc (ESM: FFY).

Chiquita did not provide further details on why it has now signed a confidentiality agreement with Safra and Cutrale.

The U.S.-based company did say, however, the Brazilian companies would be allowed 'to conduct due diligence, including access to a data room and its management team'.

It added that the firms indicated they would use their best efforts to complete their due diligence and present their 'definitive offer as expeditiously as possible for Chiquita's consideration'.

A special meeting of shareholders to vote on the ChiquitaFyffes transaction was due for Sept. 17, but on Monday Chiquita proposed that it be postponed until Oct. 3, unless the Irish High Court has any objections.

The company earlier said that Fyffes had granted Chiquita a waiver permitting Chiquita to engage in discussions with Cutrale and Safra.

NGO Banana Link and the Latin American Banana Worker Syndicate Coordinator (COLSIBA) have expressed concerns about what a Chiquita takeover would mean for social corporate responsibility, given Cutrale's unsavory labor rights track record on Sao Paulo citrus farms.

COLSIBA coordinator Gilbert Bermúdez described Cutrale as a "very aggressive" group that did not show respect for labor rights, that had been convicted by Brazilian courts for illegal outsourcing, had been fined for discriminating against pregnant women, and that had been charged with having poor conditions in worker housing; all cases that have occurred within the last two years.

Banana Link international coordinator Alistair Smith told www.freshfruitportal.com that a takeover of Chiquita by Cutrale and Safra threatened to jeopardize 15 years of the multinational's efforts to 'put its house in order' in terms of social dialogue and relations with its workforce.

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www.freshfruitportal.com