Charlotte, North Carolina-based fruit company Chaiquita Brands announced Monday it is merging with Ireland-based Fyffes in an all-stock deal valued at $1.1 billion, Reuters reports.
The new company, which will be named ChiquitaFyffes, will control nearly 14% of the banana supplier market well ahead of Fresh Del Monte and Dole Food Company.
“This is a milestone transaction for Chiquita and Fyffes that brings together the best of both companies,” Ed Lonergan, Chaquita chief executive says.
Officials with the new company say the merger will bring new opportunities to the industry.
ChiquitaFyffes is estimated to have $4.6 billion in annual revenue from sales of more than 160 million boxes of bananas.
With approximately 32,000 employees, the new company will be based in Ireland where it will receive operational pre-tax savings of at least $40 million by the end of 2016.
The merger will be subject to review by competition authorities, but company officials say it is unlikely to face opposition as the two companies operate in different markets.