The kiwifruit industry is losing "significant tray volumes" to the vine-wasting disease Psa and a merger between Satara Co-operative and Seeka Kiwifruit Industries would give growers the scale to fight back, shareholders were told.
Under the proposed deal, shareholders of Satara will end up owning 33 per cent of themerged company, to be called Seeka Te Puke, which will handle 30 per cent of the national kiwifruit crop and 20 per cent of the avocado harvest.
"The combination of the two companies is very compelling, particularly in light of the challenges facing the kiwifruit industry," Satara chairman Hendrik Pieters and his Seeka counterpart, Kim Ellis, said in a letter to shareholders.
Directors of the two companies have already agreed to the merger, which now requires shareholder consent. The aim is to clinch the deal in time for Satara's annual meeting on December 2.
