Shares in both Chiquita and Fyffes rocketed today in response to the deal. Chiquita gained an impressive 10.7% for the day on the NYSE to close out at $12 per share, while Fyffes’ stock added 41c (almost half its value) on the Irish Stock Exchange. Fyffes’ CEO David McCann will head the newly formed company, with Chiquita’s current chief executive Ed Lonergan assuming the role of chairman. Lonergan described the agreement as ‘a milestone transaction for Chiquita and Fyffes that brings together the best of both companies’. It is expected that the merger will encounter antitrust scrutiny from regulators prior to its projected late 2014 completion. As outlined above, Chiquita, Fyffes, Dole and Del Monte account for roughly 75% of the banana market; a considerable proportion that could raise competition issues with the United Nations. Spread betters can access a variety of quotes on both companies at http://www.spreadbetting.com/individual-shares/. Also, if you’d like a bonus of up to £5,000 for opening a spread betting account with ETX Capital today, visit http://www.etxcapital.co.uk/bonus
Joe Expert
Chiquita & Fyffes merge to form world’s largest banana company
Chiquita Brands International and Irish tropical fruit company Fyffes announced a $526 million merger in a joint statement today. The all stock deal will establish the world’s largest banana company, creating a new entity called ChiquitaFyffes. The new firm will have 32,000 employees and will take in approximately $4.6 billion in annual revenue. Domiciled in Ireland, ChiquitaFyffes’ shares will be traded on the New York Stock Exchange upon the deal’s official finalization. Chiquita presently account for 22% of the global banana market, while Fyffes make up a further 7%. Thus ChiquitaFyffes’ 29% will see it surpass Dole Foods as global leader in banana distribution.
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