Dutch producer association Versdirect.nl's proposed €40m takeover of two of the Netherlands' major fresh produce trading houses, Combilo and Scherpenhuizen, will not go ahead, it has been announced.
According to reports, the company's board members voted against the proposed acquisitions, going against an earlier member vote which was overwhelmingly in favour of the move.
The decision to abandon the takeover was apparently taken because of the recent worsening in the general market situation for Dutch vegetable producers and suppliers, with prices falling to unprecedented lows in the past year.
Previously known as Vers Direct Nederland (VDN), Versdirect.nl has earlier said that the takeover would enhance strategic cooperation which already exists between the organisations, partnerships which are expected to continue despite this week's announcement.
The merger of the three companies was also expected to have a positive impact on the returns paid to producers by improving efficiency and marketing through the supply chain.
Versdirect.nl was awaiting final approval of the merger from the Dutch Competition Authority (NMa) and banking institutions.
