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

|About: Chiquita Brands Internati... (CQB)|By:, SA News Editor

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)