Greenyard Foods will be the name of enlarged, listed company

Greenyard Foods will be the name of enlarged, listed company

Greenyard Foods, Univeg and Peatinvest have reached a "final agreement" over a proposed merger, which, the companies said, will create a "global leader in fruit and vegetables".

The combined business will be a produce giant with annual sales of EUR3.7bn (US$4.16bn)

The merger deal involves the contribution of 100% of Univeg as a partial de-merger of its parent company, De Weide Blik (holding 95.4% in Univeg). It will also involve a contribution in kind of 4.6% of Univeg, and through a contribution of 100% of Peatinvest against newly-issued Greenyard Foods shares.

The enlarged company will be listed and named Greenyard Foods. It will become the parent company of the newly-formed group. Greenyard Foods will own 100% of the shares of Univeg and Peatinvest and, in return, 25.5m new shares of Greenyard Foods will be issued to the shareholders of Univeg and Peatinvest.

Following the completion of the deal, existing Greenyard Foods shareholders will hold 42.5% of the group. Univeg shareholders will own 49.6% and 7.9% of shares will be controlled by existing Peatinvest shareholders.

The deal is subject to competition and regulatory approval.