Chiquita and Fyffes receive EC clearance for merger

Chiquita Brands International, an international marketer of fresh and value-added food products, and Fyffes, an international importer and distributor of tropical produce, have received European Commission (EC) clearance for their proposed merger transaction.

The regulatory clearance will help the companies complete the $526m agreement, which will create the world’s largest banana producer. The merger has been unanimously approved by the board of directors of both companies.

According to Reuters, the combined company would have a 14% share of the $7bn global banana market and significant bargaining power with retailers.

Speaking about the clearance in a joint statement, Chiquita’s chief executive officer Ed Lonergan and Fyffes executive chairman David McCann said: "This regulatory clearance represents a significant milestone for our proposed transaction to create the number one banana company globally.

"We have worked closely with the EC to address any concerns, and today’s decision reaffirms our confidence that the combination of Chiquita and Fyffes is a natural strategic partnership, one that is now assured of a clear timeline to completion before the end of the year."

The EC said the deal would not affect consumers or supermarkets with their own private label bananas, but did add there was a risk of competitors being shut out by shipping companies.

Chiquita and Fyffes had proposed limited commitments on 16 September to facilitate the clearance of the merger by the EC in its phase I review period.

The proposed merger has now received all necessary regulatory approvals and is subject to approval by the shareholders of both companies and the High Court of Ireland.