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)

From other sites
Comments (3)
  • rjj1960
    , contributor
    Comments (1478) | 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 (1768) | 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
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs