Banana merger

The oldest fruit brand in the world Fyffes’ merger with the US food group Chiquita will create the world’s largest banana company called ChiquitaFyffes plc, with about $4.6bn (€3.3bn) in annual revenues.

ChiquitaFyffes will be listed on the New York Stock Exchange, but will remain incorporated here. The transaction will see Chiquita shareholders own about 50.7% of the new company, with Fyffes shareholders owning the remaining 49.3%.

The combined company will own or lease around 24,000ha across central America. Analysts said the new company would have a 14% share of the global market. But since most bananas are eaten in the countries where they are grown, that figure probably understates the company’s importance in the export market. It is estimated that the merged company will account for almost 30% of the European market and will be about 50% bigger than its next largest rival in the banana market.

FBD deposit rate

FBD Financial Solutions has announced an enhanced deposit rate on a leading investment fund.

The deposit-based investment offers 100% capital security from Investec Bank and is protected under the UK deposit guarantee scheme for qualifying depositors. This is an interesting diversification from holding all of your deposits in Irish banks.

One quarter of the money is placed on deposit which matures after one year. FBD Financial Solutions has enhanced this rate to 7% – an increase of 2% on the standard terms available.

The remaining three quarters of the money will be linked to the performance of a leading international fund over the next five years and three months. This portion also offers 100% capital security but there is no access to the money for the term.

Amazon groceries

Amazon continues to make strides selling groceries to online shoppers. The world’s largest online retailer has signed a deal with a Mexican food company to sell food on its British website. This move further increases competition for the retail giants such as Tesco, which is struggling to retain market share in Britain and Ireland. Last year, Tesco bought over €700m of Irish food and drink exports.