Seeking Alpha

Chiquita to buy Fyffes to create world's biggest banana firm

  • Fruit distributor Chiquita Brands (CQB) has agreed to acquire Irish peer Fyffes (FYFFF) for $526M in an all-stock deal that will create the world's largest banana supplier.
  • Chiquita shareholders will own 50.7% of the combined company, to be called ChiquitaFyffes, while Fyffes shareholders will receive the rest.
  • The merged entity would have annual revenues of $4.6B.
  • The transaction will help Chiquita lower its tax revenue, as the combined firm will be domiciled in Ireland.
  • However, the deal could spark antitrust fears, as four multinationals - including Chiquita and Fyffes - control 80% of the world's banana market. (PR)
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Comments (3)
  • rjj1960
    , contributor
    Comments (1371) | Send Message
     
    I am so happy I locked down a position of 4 bananas before this news hit.
    10 Mar 2014, 08:44 AM Reply Like
  • ilikemoney
    , contributor
    Comments (17) | Send Message
     
    Seems like the banana cartel should be split.
    10 Mar 2014, 01:38 PM Reply Like
  • satyr
    , contributor
    Comments (1324) | Send Message
     
    Unlikely that antitrust in an issue. The combined company controls less than 50% of volume, there are 2 other very large competitors, and CQB and Fyffes barely overlap geographically (the most important point). Objections, if any, will be politically motivated.
    10 Mar 2014, 01:47 PM Reply Like
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