A final agreement has been reached between Greenyard Foods, Univeg and Peatinvest to create a global leader in the fruit and vegetable sector.

The board of directors of Greenyard Foods have made the announcement reiterating the 'business combination' has the potential to create a unique player in the market, due to its capabilities in offering a full range of fresh, frozen and canned products.

According to a release, the combination of all three companies creates combined sales of €3.7 billion (US$4.1 billion).

The combination works through a contribution of 100% of Univeg, on the one hand as a partial demerger of its parent company, De Weide Blik (holding 95.4% in Univeg) and on the other hand as a contribution in kind of 4.6% of Univeg.

The deal also involves a contribution of 100% of Peatinvest against newly issued Greenyard Foods shares. The listed company Greenyard Foods becomes the parent company of the newly formed group.

The transaction is subject to regulatory approvals, EU Commission competition clearance and approval by an extraordinary Greenyard Foods shareholders meeting.

Completion is expected later in the Northern Hemisphere summer.

www.freshfruitportal.com