Chiquita has rejected a $611 million takeover bid by Brazilian groups Cutrale and Safra, saying it was sticking to its plan to merge with European fruit seller Fyffes.

The banana company said the offer from Brazil was “inadequate” and that it would not hold talks with the groups “at this time”.

Fruit juice company Cutrale and investment bank Safra made a $611 million bid for US-based Chiquita on Monday.

In March, Chiquita and Irish fruit group Fyffes agreed to merge.

Monday’s offer from the Brazilian businesses sent Chiquita shares 31% higher, while Fyffes fell 15%.

Chiquita has rejected a $611 million takeover bid by Brazilian groups Cutrale and Safra

A Chiquita-Fyffes merger would create the world’s largest banana supplier, with $4.6 billion in annual revenues.

The deal would allow Chiquita to avoid higher US taxes by relocating its statutory headquarters to Ireland.

This so-called tax inversion has been considered by other US companies, and become highly controversial as it would mean lost government revenues.

Chiquita said on Thursday that the Brazil offer was “inadequate and not in the best interests of Chiquita shareholders”.

“Having made such a determination, Chiquita has determined not to furnish information to, and have discussions and negotiations with, the Cutrale Group and the Safra Group at this time.”

Cutrale and Safra said on Monday that their offer was “clearly more favorable to the Chiquita shareholders than the proposed merger with Fyffes”.

According to the UN, the global banana market is currently controlled by four firms, Chiquita, Dole Food Company, Fresh Del Monte and Fyffes.