Chiquita and Fyffes receive EC merger clearance

On 3 October 2014, the European Commission cleared the merger between Chiquita and Fyffes, subject to a behavioural commitment, after a phase I investigation.The transaction combines the two largest banana suppliers in Europe, and are active at all stages of the supply chain, from sourcing in the Tropics, shipping, ripening, sales and distribution to European customers.  The Commission’s investigation confirmed the parties’ submissions that there are low barriers to entry and expansion at several of these stages.  The Commission ultimately concluded that despite high combined shares in some Member States, the parties would remain constrained by a large number of alternative suppliers, and supermarkets are in a strong position, several having developed their own private label bananas.  RBB worked alongside King & Wood Mallesons SJ Berwin and Freshfields Bruckhaus Deringer. For more information, please see here.