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.
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- according to = as said by ...
- agree = to say yes
- aim = what someone wants to do or achieve
- billion = a thousand million
- brand = type of product that has a special name or design
- century = a hundred years
- date back = here: was started
- disease = illness
- employee = a person who works for a company or a business
- found - founded = start, create
- headquarters = the main building of a company
- income = the money you get by doing work or selling a product
- prone = here: likely to suffer from something
- rely = depend on
- share = part of a company
- spokesman = person who is a representative of a company and gives the public information about it
- stock exchange = place where you buy and sell parts of companies
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- trade = buy and sell products
- supplier = a company that trades with a certain product
- US-based = the company's seat is in the USA
- worry = problem