The planned merger between Greenyard Foods, Univeg and Peatinvest has moved another step closer with official clearance being given by the European Commission. 

Greenyard Foods announced today (May 26) notice had been received that the European Commission had decided not to oppose the operation and to declare it compatible with both the internal market and the European Economic Area (EEA) Agreement.

"This is another step towards the combination of Greenyard Foods, Univeg and Peatinvest to form a global market leader in fruit and vegetables," says a statement.

"The transaction is subject to the approval of the listing prospectus by the FSMA [Belgian Financial Services and Markets Authority] and the approval of the Extraordinary General shareholders meeting of Greenyard Foods on June 19, 2015."

Rumors first began circulating a few months ago that a three-way tie-up and an initial public offering (IPO) could be on the cards, and was later confirmed by the companies.

The combination of all three companies would create combined sales of €3.7 billion (US$4.1 billion).

The merger 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.

Completion is expected later in the Northern Hemisphere summer.

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