Sumitomo’s Acquisition of Fyffes Approved
The European Commission has approved, under the EU Merger Regulation, the €751.4 million acquisition of Fyffes, a leading international grower, importer and distributor of fresh produce, by Sumitomo of Japan.
With annual turnover in excess of €1.2 billion, Fyffes is headquartered in Dublin, Ireland with operations in Europe, the US, Canada, Central America and South America and Asia. Fyffes activities include the production, procurement, shipping, ripening, distribution and marketing of bananas, pineapples, melons and mushrooms. It markets its produce under a variety of very well-known brands including Fyffes®, Sol®, Turbana®, Hoya®, Highline® and All Seasons® and employs in excess of 17,000 people worldwide.
With 109 locations in 66 countries, Sumitomo Corporation consists of over 800 companies and has a market capitalisation of about US$15 billion with US$8 billion in cash on balance sheet as at its year end on 31 March 2016. Sumitomo has been active in the banana industry since the 1960s and is the market leader in Asia with a fully integrated business model with interests ranging from plantation operations in the Philippines to retail distribution across the Asian region. Currently, the Sumitomo Group imports approximately 30% of the bananas into the Japanese market.
The European Commission concluded that the proposed acquisition would raise no competition concerns because the companies’ activities do not overlap in the European Economic Area.
