Cyber Bunny
All posts from Cyber Bunny
Cyber Bunny in Cyber Bunny,

Merger to Make Chiquita World's Largest Banana Supplier

Chiquita Brand International said that it will merge with Fyffes that will be stock-for-stock transaction valued at $1.07 billion in equity value.

The combined company will be valued at 7.7 times its estimated $40 million in synergy. However, this deal may be faced with regulation as the top 4 firms including Chiquita and Fyffes will have combined market share of 80%.

Fyffes’s clean of debt balance sheet will help improve Debt to Ebitda ratio of Chiquita from 2.7 to 4.9 times. Chiquita’s shareholders will own 50.7% of the combined company but Fyffes shareholders will get most of the value since 36% premium of the shares will go to them compare to those of 5% for Chiquita shareholders.