NEW YORK (TheStreet) -- U.S. banana company Chiquita Brands International (CQB) reached an agreement to merge with Ireland's Fyffes in a deal that would catapult the world's second-largest banana producer into the top spot.
The merger values Fyffes at about $526 million. The all-share deal will give Chiquita stockholders one share of the new company -- ChiquitaFyffes -- for each share of Chiquita they own. Fyffes stock holders will receive a fraction of a share for theirs. Buffet's 10 Favorite Stocks
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Chiquita is currently No. 2 in market share behind Dole in the banana producing market share and ahead of Fresh Del Monte (FDP) . Fyffes is fourth with a 7% market share.
The new banana distributor will have about $4.6 billion in annual revenue and a combined work force of more than 30,000 employees.
TheStreet Ratings team rates CHIQUITA BRANDS INTL INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about its recommendation:
"We rate CHIQUITA BRANDS INTL INC (CQB) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, poor profit margins and weak operating cash flow."