You choose, we deliver
If you are interested in this story, you might be interested in others from The Journal Gazette. Go to www.journalgazette.net/newsletter and pick the subjects you care most about. We'll deliver your customized daily news report at 3 a.m. Fort Wayne time, right to your email.

Business

  • Fort Wayne ranks No. 11 on Forbes list of Opportunity Cities
    Forbes has ranked Fort Wayne No. 11 on its list of Opportunity Cities. The 19-city list, published Thursday, put Columbus, Ohio, at the top.
  • Alibaba stock soars 40% in massive IPO
    NEW YORK – Alibaba debuted as a publicly traded company Friday and swiftly climbed more than 40 percent in a mammoth IPO that offered eager investors seemingly unlimited potential for growth and a way to tap into the burgeoning Chinese
  • China levies record fine
    BEIJING – Drug giant Glaxo­SmithKline was fined $492 million Friday for bribing doctors in China in the biggest such penalty ever imposed by a Chinese court.
Advertisement
Associated Press
Chiquita Brands International is merging with Irish fruit company Fyffes, creating a banana behemoth.

New top banana born with Chiquita merger

– Yes, they have more bananas.

Fruit supply companies Chiquita of the United States and Fyffes of Ireland said Monday they had agreed to merge to create the world’s biggest banana supplier.

The all-shares agreement means the two companies will become ChiquitaFyffes PLC, be traded on the New York Stock Exchange and be headquartered in Dublin, a more tax-efficient corporate base.

The companies said the deal, which requires shareholder and regulatory approval in Ireland and the United States, would generate $40 million in pre-tax savings through more efficient operations.

Current Fyffes and Chiquita shareholders each would own half of a combined operation expected to generate $4.6 billion in annual sales.

The two companies said the merger would create a banana behemoth that ships more than 160 million crates worldwide, about a quarter more than either of their main rivals, Dole and Del Monte. ChiquitaFyffes also would become the world’s No. 3 distributor of pineapples and melons.

Shares in both companies surged, particularly Dublin-based Fyffes, because Monday’s deal valued Fyffes shares at $1.66.

Fyffes rose 46 percent to $1.80 on the Irish Stock Exchange. Chiquita rose nearly 13 percent to $12.20 in New York.

Fyffes is Europe’s biggest banana importer and the oldest industry brand, dating to 1929; Irish wits have long cited the company’s presence as proof that Ireland really is a banana republic.

David McCann, Fyffes’ chairman, will become chief executive officer of the combined company, while the chief executive of Charlotte, N.C.-based Chiquita, Ed Lonergan, will become its chairman.

Shoppers used to seeing bananas bearing the bold blue stickers of Chiquita or Fyffes are unlikely to notice any difference there. The two brands are staying separate.

Advertisement