Chiquita Brands to Buy Fyffes to Form Biggest Banana Company

[FarCenter]

Chiquita Brands International Inc., (CQB) owner of the namesake banana label, agreed to buy Fyffes Plc (FFY) in an all-stock transaction that values the Dublin-based fresh-produce distributor at about $526 million.

The deal will create a business with annual revenue of about $4.6 billion, the companies said today in a statement. Chiquita shareholders will own about 50.7 percent of the combined entity, with Fyffes investors holding the remainder.

“The deal is logical and will be a good fit going forward for both parties,” said David Holohan, an analyst at Merrion Capital in Dublin. “This is an excellent result for Fyffes.”

The transaction will create the world’s biggest banana company, which will also produce packaged salads, melons and pineapples. Known as ChiquitaFyffes Plc, the new business will target at least $40 million of annual cost savings by the end of 2016 through more efficient purchasing.

http://www.bloomberg.com/news/2014-03-10/chiquita-brands-to-merge-with-fyffes-to-create-banana-leader.html

The merged company will be domiciled in Ireland.

[pipoman]

1. Banana distribution chains produced among the first

Seasonal fruit available year round. It is the model that led to many other seasonal fruit and vegetables availability year round.

[jsr]

2. Watch your banana prices go up

[SharonAnn]

3. more efficient purchasing - Cut wages for impoverished peasants, ban unions, use pesticides

"more efficient purchasing." translates into cutting wages for impoverished peasants, banning unions through violence and mercenary squads, overusing pesticides with no safety protections for workers.

yep. The world has become a "banana republic".

[Vashta Nerada]

4. So...does that mean there are only 2 banana companies now?

[FarCenter]

5. There will be three big ones -- Dole and Del Monte are the other biggies.

[Javaman]

6. I wonder if the banana corps have come up with a new variety yet?

the Cavandish, which we currently eat, is going extinct via disease.

Just like the Gros Michel before it.

http://en.wikipedia.org/wiki/Gros_Michel_banana

[rrneck]

7. Full steam ahead...