A new world giant in the banana sector is born. It will be called Chiquita Fyffes and will come to life from the maxi-merger announced today between the American group Chiquita Brands International and its Irish competitor fyffes (which markets the Sol brand).
The operation will take place through a share swap and will produce an industrial giant with a turnover of 4,6 billion dollars (3,3 billion euros). The share capital will be owned by 50,7% of current Chiquita shareholders and 49,3% by Fyffes.
“It is a natural strategic partnership that brings together two complementary companies with a long history and an important reputation,” commented Chiquita president and future president of the new company, Ed Lonergan, specifying that the distinction between the two brands will be maintained.
In addition to becoming the overall market leader in bananas, Chiquita Fyffes will also be a heavyweight in packaged salads, melons and pineapples. The group will be present in more than 70 countries and will have around 32 employees.
“We are eager to start working with the Chiquita team – said the general manager of Fyffes, David McCann, future general manager of CuiquitaFyffes -. We will build a well-positioned company in a very competitive market and create a lot of shareholder value.”
The merger is estimated to free up $40 million (€28,8 million) from pre-tax cost synergies. The transaction will require approval by both companies' shareholders and by the Irish High Court of Justice, as the new company, listed on the New York Stock Exchange, will be domiciled in Ireland.
