EU regulators to clear Chiquita, Fyffes $526 mln deal -sources

* Deal will create the world's largest banana supplier

* Companies offered concessions last week to allay EU concerns (Adds European Commission declines comment)

By Foo Yun Chee

BRUSSELS, Sept 24 (Reuters) - U.S. company Chiquita and Irish peer Fyffes (Other OTC: FYFFF - news) are set to secure conditional EU approval for their $526 million tie-up to create the world's largest banana producer, two people familiar with the matter said on Wednesday.

The merged company will have a 14 percent share of the $7 billion global banana market, giving it significant clout in negotiating with retailers.

Chiquita and Fyffes offered concessions to the Commission last week to allay competition concerns, but did not provide details.

Industry experts say these may include an offer to sell overlapping businesses or import licenses and making it easier for local ripeners to do deals with the company.

"It's expected to be phase 1 clearance," said one of the people, referring to the European Commission's preliminary review.

Commission spokesman Antoine Colombani declined to comment. The European Union competition watchdog is scheduled to decide on the deal by Oct. 3. (Reporting by Foo Yun Chee; editing by Barbara Lewis and David Clarke (Toronto: CKI.TO - news) )