Parmjit Singh, head of the food and drink group at Eversheds, has commented on news that the world’s two biggest banana producers are to merge.
Singh said: ‘The news that Fyffes and Chiquita are merging will not come as a surprise. For many food producers, this is a natural next step to meet the pressure to achieve cost efficiencies, improve shareholder returns and attract investment.
‘Retailers have enjoyed strong negotiating positions over the last decade with food producers and these types of mergers are intended to help food producers to gain some parity on those negotations.
‘As consumer confidence improves around the world, expect to see more of these types of mergers in the global food and drink sector.’