Fyffes is prepared to spend up to £500 million (€634 million) on suitable acquisitions, the company's chairman, Mr Neil McCann, told its annual general meeting in Dublin yesterday.
He said the acquisitions were likely to be made in continental Europe, where the company currently has an 18 per cent share of the banana market.
The annual general meeting also heard that the current trade dispute between the EU and the United States over access to the EU banana market would have little effect on the company.
Mr McCann said Fyffes expected the existing EU regime, which has been strongly criticised by the United States, to be maintained despite the current investigation by the World Trade Organisation (WTO).
Speaking after the a.g.m., Mr Carl McCann, vice-chairman, said the £500 million available for acquisitions could be funded in several ways. He said the company could contribute £100 million of its own, borrow up to £300 million and make up the rest by offering equity. He said "routine discussions" were taking place with various parties in the industry about potential acquisitions.
He said the strategic alliance formed with the South African fresh fruit distributor, Capespan, was likely to be completed in early May. He said in a full year the Capespan deal would result in Fyffes sales increasing by almost a third.
Earlier the meeting was told that Fyffes had recently received £10.8 million for its 18.5 per cent stake in United Beverage Holdings which was sold to Guinness Ireland last year.
