US giant Chiquita has gobbled up Ireland’s Fyffes in an all-share deal announced today, creating a $4.6 billion (£2.76 billion) banana behemoth.
But the deal could trigger a competition inquiry because the newly formed ChiquitaFyffes and two other companies will control about 80% of the global banana market — the others being Fresh Del Monte and Dole Food Company.
ChiquitaFyffes, which will continue to use both brand names, will be listed in New York but headquartered in Dublin.
When the deal completes, due by the end of the year, Chiquita shareholders will own about 50.7% and Fyffes shareholders the rest.
The enlarged entity, which will operate across 70 countries, could generate operational savings before tax of more than $40 million over three years and will have a combined equity value of about $1.07 billion.
It will have 32,000 staff and own or lease 24,000 hectares of land across central America.
Fyffes also revealed its full year results today and said 2013 pre-tax earnings before interest jumped 10.6% to €31.3 million while revenue was up 6.3% at €1.08 billion.
David McCann, Fyffes executive chairman, said: “We will be able to use our joint expertise, complementary assets and geographic coverage to develop a business that can run smoothly and efficiently.”
