U.S. fruit distributor Chiquita Brands International Inc is to purchase Irish rival Fyffes Plc in an all-stock deal valued at $526 million to create the world's biggest banana supplier.The transaction will create a fresh produce company worth about $4.6 billion in annual revenues and it is expected to generate operational pre-tax savings of at least $40 million by the end of 2016.Chiquita shareholders will own about 50.7 percent of the combined company, ChiquitaFyffes, while Fyffes shareholders will have the remaining 49.3 percent, the companies said in a statement on Monday.The New York-listed combined company will have tax savings from being domiciled in Ireland, similar to U.S. drugmaker Perrigo's acquisition of Elan last year.
Chiquita Brands International, Inc. (CBII), along with its subsidiaries, is an international marketer and distributor of bananas and other fresh produce, sold under the Chiquita and other brand names in 70 countries, and packaged salads sold under the Fresh Express and other brand names primarily in the United States. Shares of CQB fell by 0.18% or $-0.02/share to $10.84. In the past year, the shares have traded as low as $6.04 and as high as $13.68. On average, 343377 shares of CQB exchange hands on a given day and today's volume is recorded at 268163.
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