U.S. markets closed

No jobs bonanza from banana merger

Jack Horgan-Jones
No jobs bonanza from banana merger

Ireland won’t get a jobs windfall despite becoming home to the world’s largest banana company this year, it is understood.

Global powerhouse brands Chiquita and Fyffes have combined to form new company, ChiquitaFyffes, which will be domiciled in Ireland but there will be no extra staff hired in addition to those already employed here by Fyffes.

Fyffes employs 2,500 full time workers in Ireland, with another 9,500 picking up work on a seasonal basis.

A source close to the deal said that Ireland’s comparatively benign corporate tax environment “doesn’t come into” the merger decision, although Irish Twitter users don’t seem quite convinced by this explanation.

The new company will be majority owned by former Chiquita shareholders, who will control 50.7 per cent of the venture. The deal is “expected to be tax free-for Irish tax purposes, to Fyffes shareholders.”

The new company expects to net around $40m in pre-tax cost savings, and will be listed on the New York Stock Exchange. The deal will be completed before the end of 2014.

The merger will have to secure approval from the High Court in Dublin and shareholders in both companies before getting the green-light.

Here’s why one company lets workers look up each other’s salary

Fine Gael adviser told to answer questions on payments from Rehab