The Irish banana giant Fyffes has agreed to a takeover bid from the Japanese Sumitomo Corporation. The managements of both companies have agreed on the acquisition and, as a result, the Irish giant will be taken over by Swordus Ireland Holding, a subsidiary of Sumitomo.
"We have long respected Fyffes because of its good reputation and leading market position," commented Hirohiko Imura, Representative Director and Managing Executive Officer of Sumitomo. "We are pleased that the management of Fyffes has unanimously agreed to accept our offer to the shareholders." The Fyffes shareholders will be offered 2.23 Euro per share. The McCann family is the largest shareholder, with 12 percent of the shares. The offer is nearly 50 percent above the closing price on 8 December. This brings the bid to a total of 751 million Euro.
"We are convinced that this transaction is an attractive proposition for our shareholders," said David McCann in a statement. "It crystallises the significant value generated by various developments over the last few years." So far, about 27 percent of the shareholders have already accepted the bid. The acquisition should be completed in the first quarter of next year.
Sumitomo is a Japanese company that, among other things, is a great name in Asia's banana growing sector. The company has recently been working to expand the portfolio and gain a footing outside the Japanese market.