Chiquita, Fyffes to Merge Creating New Top Global Banana
Chiquita Banana, now the second biggest market holder of bananas (22% of the US market) has plans to merge with Fyffes (7% US market). In a $1.2 billion all stock merger, the two companies would create Chiqutafyffes that would be the largest provider of bananas in the world. Currently Dole is the largest with 26% of the market. This deal does bring some competition issues, such banana importers such as varying Colombian and Panimian exporters will have fewer options when it comes banana sales. The new company that would be formed Chiqutafyffes would have 32,000 employees and $4.6 in annual revenue.
1 comment:
I am very interested to see what happens in the aftermath of this merger. I don't think the banana industry is in trouble or will stir up conflict, but it is definitely going to be interesting to see how it impacts other trade plans. The exports from Columbia and Panama will have to shift, and competitors will vary. But, in the long run, I think this could be a great source of growth for Fyffes, and a strengthening opportunity for Chiquita.
Post a Comment