Satara, Eastpack call off merger in wake of PSA
A proposed merger between New Zealand kiwi packers and growers Satara and Eastpack has been called off after Eastpack cancelled the deal due to commercial uncertainty surrounding the recent outbreak of kiwi vine disease PSA, according to a Satara statement.
The news comes on the heels of a decision last week to postpone the deal until a clearer picture of how PSA will affect the industry emerges. Satara, for its part, maintains that the impact on its 2011 financial results will be “minimal” and that attempts at dialogue were made.
“Satara Directors are confident that they have pursued all fair and reasonable commercial avenues to allow the merger to proceed including renegotiation of the terms, but this was not achievable,” the statement said.
PSA, a disease that affects the kiwi vine, was first encountered in the beginning of November and has caused widespread concern for the country’s kiwi industry. As of Dec. 1, 100 orchards were confirmed to have the disease.