Satara kiwifruit

In New Zealand, the proposed merger between Satara Co-operative Group and Eastpack has reportedly fallen through over fears linked to the recent outbreak of Psa in some of the country's kiwifruit orchards.

Satara told the New Zealand Stock Exchange (NZX) that Eastpack had withdrawn from plans to form a wholly grower-owned unit, despite the efforts of Satara directors to renegotiate merger terms, NZPA reported.

'Eastpack has indicated that its decision is due to significant commercial uncertainty it believes the recent Psa bacteria outbreak has had on its orchards and the industry in general, and the associated impact on the availability and pricing of capital from their banking provider to fund the merger,' Satara told the NZX.

Satara noted that the Psa outbreak had had a 'minimal impact' on its kiwifruit crop, with three orchards testing positive, and the group is not expecting a 'significant' impact on its supply.

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