Before the end of the year, banana giant Chiquita will merge with Irish Fyffes to form the largest banana company in the world.
The deal between American Chiquita and Irish Fyffes will be done entirely in shares and will be worth 380 million euro. The new company ChiquitaFyffes will almost be split evenly in shares, as Chiquita will own 50.7 % of shares while Fyffes will get the remainder.
The merger should be finished by the end of the year, but there are still a few issues to be tackled. As the United Nations believes the entire banana industry is dominated by four large parties: Chiquita, Fyffes, Fresh Del Monte and Dole Food Company, a ChiquitaFyffes-collaboration might create a too powerful player.
The company, whose joint yearly turnover would be 3.3 billion euro, will keep its main offices both at Charlotte (United States) and Dublin (Ireland). The companies would be able to save up to 40 million euro in costs and, thanks to its Irish head quarters, plenty of tax-saving measures will be possible as Ireland has a tax-friendly company climate.
Together, Chiquita and Fyffes will employ some 32,000 people in more than 70 countries.