European Commission approves Fyffes, Chiquita deal

Banana companies Fyffes and Chiquita have been granted European Union regulatory approval for their $526 million tie-up to create the world's largest banana producer.

The combined company would have a 14 per cent share of the $7 billion global banana market and significant bargaining power with retailers.

The European Commission said the deal would not hurt consumers or supermarkets with their own private label bananas but there was a risk competitors could be shut out by shipping companies.

To address this concern, it said the companies would have to refrain from exclusivity deals with shipping companies and must not provide incentives to shippers to stop carrying rival fruit, in return for its approval of the deal.

Reuters