Chiquita and Fyffes have recognized the urge to merge and combined their resources. Today they are one company although it will take them some time to fully integrate forces and functions. The board of directors of both firms has started holding parleys.
The merger makes the new company the world’s largest banana exporter. As for the stocks and shares of both companies, they will undergo a re-exchange and reshuffling. Chiquita was a leading seller of fresh food products. It was especially known as an exporter of high quality, large, fresh, blemish-free bananas.
Each banana had a blue label on it that was the distinguishing mark that differentiated it from other brands. Besides its main base which was in the United States, it was sold in more than 70 countries around the world.
"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," said Ed Lonergan, Chiquita's Chief Executive Officer.
Fyffes meanwhile is situated in Dublin, Ireland. This company had more influence in Europe, Asia, the US, Central America and South America. With this transaction, the newly-formed hybrid company will be called ChiquitaFyffes. And it will have over 32,000 employees spread throughout the global village.
The cream of the crop has melded with the best of the best in this social and economic exchange of sorts. A lot of hope is being held for the future prospects of the novel organization. It seems size does matter and now the world will get even greater quality and quantity of bananas.
"This deal will be transformative and offer exciting opportunities for the new business. We are looking forward to working with the Chiquita team to build a combined company which is well positioned to succeed in our highly competitive marketplace and which will create significant value for our shareholders," said David McCann, Fyffes Executive Chairman.
The synergetic value of the newly combined companies will reach $40 million within the next half decade or so. The behemoth setup will export 160 million crates of fresh bananas on a yearly basis.
"Our outstanding employees will benefit from working for a larger, more diverse business which offers opportunities for growth. 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," added David.