A union between Chilean berry giant Hortifrut and California-based Munger Farms has been delayed with technicalities that still need to be ironed out.

In announcement to the Chilean Stock Market on Friday, Hortifrut said negotiations had progressed since a Memorandum of Understanding (MoU) was signed in April but certain aspects of the deal had not been settled by the merger due date of June 30.

The company said delays related specifically to the subdivision or ownership of Munger's non-berry business lines such as pistachios, almonds and hazelnuts.

"The merger continues to be in the common interest of Munger Farms and the Company," Hortifrut said in the announcement.

"However, the parties recognized it would take Munger Farms a prolonged time to resolve the previously indicated subjects, and therefore they decided not to renew the MoU at maturity on June 30, 2016."

The company emphasized the measure would not prevent the merger's future implementation.

"Once the aforementioned Due Diligence issues of Munger Farms are resolved, the parties have the intention of restarting negotiation with respect to the merger."

"In the meantime both companies will execute part of the objectives of the merger that are free from restrictions, and will jointly invest US$100 million to be executed within the next 24 months in existing productive farms and adding new acreages of high tech and value niches," Hortifrut president Victor Moller added in a statement given to www.freshfruitportal.com.

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