World’s Largest Banana Company Created

bananaUS fruit company Chiquita have teamed up with Irish rival Fyffes, Europe largest distributor, to become the world’s biggest banana supplier.

‘Milestone transaction’

With the $1 billion tie-up, the new company is expected to sell about 160 million boxes of bananas every year.

ChiquitaFyffes will have an operating presence in over 70 nations and a workforce of about 32,000 people.

“This is a milestone transaction for Chiquita and Fyffes that brings together the best of both companies,” said Chiquita Chief Executive Ed Lonergan.

Global scale

In the tie-up, investors will get shares in each company, with Fyffes stockholders owning as much as 49.3% of the merged firm.

“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 Merrion Stockbrokers analyst David Holohan.

The deal creates a strategic partnership that combines two companies that will work to bring the best practices in countries where they operate.

About the Author

Wileene is a writer who enjoys the challenges of writing an engaging and creative articles. She has a passion for writing and considers lifestyle, media, and healthy living topics as her strength/s. She likes reading non-fiction, thriller, children's, and science fiction books. She believes that she is capable of writing articles and yet she still has room to improve.