Fyffes and Chiquita to create biggest banana firm

banans The firm will be listed in New York

Related Stories

Irish fruit firm Fyffes and US rival Chiquita are to merge to create the world's largest banana company, worth about $1bn (£597m).

The new firm, named ChiquitaFyffes, is expected to sell about 160 million boxes of bananas annually, more than any rival.

"This is a milestone transaction for Chiquita and Fyffes that brings together the best of both companies," said Chiquita boss Ed Lonergan.

It will be listed in New York.

In the merger, shareholders will receive shares in each firm, with Fyffes shareholders owning about 49.3% of the combined company.

Mr Lonergan said the deal would help it to save costs and expand the areas it served.

The tie-up came as Fyffes revealed that its profit before tax for 2013 rose 9.8% to 28.7m euros (£23.8m).

It said results in its banana division were "broadly satisfactory", although profits in that division were slightly down compared with 2012's strong performance.

It said "significant inflation" in the cost of fruit and the strength of the US dollar against sterling had both hit performance.

More deals expected

The global market is currently controlled by four firms - Chiquita, Dole Food Company, Fresh Del Monte and Fyffes - according to the United Nations.

"The first three [companies] on a global scale are not too far away from each other, whereas Fyffes was a good deal smaller. Now a firm number one has been created, there will be some impetus for further consolidation in the sector," said David Holohan, analyst at Merrion Stockbrokers.

The deal is expected to go through this year, but will be subject to review by competition authorities.

However, Mr Holohan said that because the two firms operated mainly in separate North American and European markets, this was unlikely to be a problem.

More on This Story

Related Stories

More Business stories

RSS

Features

  • Polish and British flags alongside British roadsideWar debt

    Does the UK still feel a sense of obligation towards Poles?


  • Alana Saarinen at pianoMum, Dad and Mum

    The girl who has three biological parents


  • Two young Red deer stags practice their rutting in the long grass in Richmond Park, London - 1 September 2014Day in pictures

    The best news photos from around the world in the past 24 hours


  • Islamic State fighters parade in Raqqa, Syria (30 June 2014)Who backs IS?

    Where Islamic State finds support to become a formidable force


From BBC Capital

Programmes

  • Art installationClick Watch

    How one artist is using computer code to turn internet radio into a unique piece of music

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.