The World's Largest Banana Company
The two biggest banana companies of the world , US-based Chiquita and Fyffes of Ireland have agreed to work together and become the largest supplier of bananas. The new company , called Chiquita Fyffes will have its headquarters in the US but will work out of Dublin because of tax reasons. The new banana company is worth one billion dollars on the world's stock exchanges will sell products worth over $4 billion a year. Each partner will hold about half of the shares. Chiquita Fyffes is expected to trade 16 billion bananas every year, about 14% of the world's banana market.
According to spokesmen of both companies the aim of the merger is to save over 40 million dollars in costs. Apart from bananas the new company also deals with pineapples and other fruits. It will have a total of over 32,000 employees.
Fyffes was founded in 1929 and rose to become Europe's largest importer of bananas. Chiquita dates back to the end of the 19th century and helped fruit become popular in America. For customers around the world there will, however, be no change, as the two companies will still market their own brands.
Some food experts criticize the deal, saying that both companies rely too much on only one type of banana, the Cavendish. This leaves the industry prone to diseases that could hit the banana plantations in South America and Africa.
Another worry is that the new company might dictate and lower banana prices, thus reducing income for banana farmers.
The new banana company - Chiquita Fyffes
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