<p>Earlier today, Chiquita and its Irish rival Fyffes, one of Europe’s largest and oldest fruit distributors, have agreed to merge to create the world’s largest banana supplier - ChiquitaFyffes. Ed Lonergan, Chiquita’s CEO, will serve as Chairman, while David McCann, Fyffes’ Executive Chairman, will lead as CEO, according to a press release. The merger, worth approximately $1.07 billion (€770 million), will allow the combined firm to nab approximately 14% of the global banana market, while both companies will maintain their brands, according to Reuters. The merger will also bring a range of melon products, including cantaloupes, watermelons, and honeydews from Fyffes’ Sol brand. How might this also influence Chiquita’s product lineup or expand the category? What will the merger mean for other banana suppliers like Dole or Fresh Del Monte?</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p> David Holohan, an analyst at Merrion Capital, says Chiquita distributes 125m cases of bananas, Fyffes 55m, Del Monte 117m, and Dole 110m, which means the combined company will be almost 50% bigger than its next largest rival, according to Financial Times. Holohan suggests that this may signal “further consolidation in the sector” now that a firm number one company has been created. He added that because the companies operate in separate North American and European markets, it’s unlikely that it’ll have to overcome strict regulatory demands, Reuters reports. Lonergan tells Reuters that he was confident the match of the businesses would “persuade regulators to give it the green light, with most of the savings expected in logistics.”</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p> Further, how might banana production be affected?</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p> ChiquitaFyffes expects to own more than 24,000 hectares of owned or leased operations in Central America, noting that the two companies will now be able to more efficiently manage its sourcing portfolio, but would continue its environmental and social responsibility commitments. According to the Food and Agriculture Organization of the United Nations (FAO), Latin America contributed 82% of banana exports in 2011, while a third of those exports came from Ecuador. Of course, it remains to be seen how the merger will impact banana producers in the region.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><img src="https://cdn.andnowuknow.com/legacyWriterImages/piechart.jpg" alt="cropped_Image_031014" /><hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> Lonergan called the merger a “natural strategic partnership that combines two complementary companies.” He said, “This is a milestone transaction for Chiquita and Fyffes that brings together the best of both companies which, we believe, will create significant value for our shareholders and offer immediate benefits for customers and consumers worldwide.”<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> <img src="https://cdn.andnowuknow.com/legacyWriterImages/graph.jpg" alt="cropped_Image_031014" /><hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> McCann said, “We believe we will be able to use our joint expertise, complementary assets, and geographic coverage to develop a business that can run smoothly and efficiently to better partner with our customers and suppliers.”</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p> According to Reuters, the new firm will be listed in New York – though domiciled in Ireland for tax purposes – and have a market value of $1.1 billion. Chiquita shareholders will own about 50.7% of the combined company, while Fyffes shareholders will own the remaining 49.3%. </p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p> The transaction of the deal is expected to complete by the end of 2014.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p> Chiquita’s stock jumped $0.88 this morning to $11.69, a 7.84% increase. </p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p> Stay tuned to AndNowUKnow as we follow the merger between Chiquita and Fyffes.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href=" http://investors.chiquita.com/phoenix.zhtml?c=119836&p=irol-irhome" target="_new"> Chiquita </a></p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href=" http://ww7.global3digital.com/fyffesplc/en/home" target="_new"> Fyffes </a></p><hr class="legacyRuler"><hr class="invisible minimal-padding">
