STILL gobbling up investment opportunities to consolidate its strengthening position in the European fresh produce market, Fyffes this week acquired a 50 per cent interest in Italian fruit and produce distributor, Peviani. On the face of it a logical deal, an association of benefit to both companies, but nothing extraordinary. Yet, as is often the case when such relationships are publicly announced, both parties indulged in ritualistic and unnecessary bout of business pleasantries.

There was soothing talk of "co operation" and significant opportunities". Fyffes, not unnaturally considers Peviani to be "an excellent, company (otherwise why pay up to £7.5 million to buy into it?) and it therefore follows that it is an "important investment". The Italians view Fyffes - as "an important supplier" and are, not surprisingly, "very happy to consolidate this relationship". All that was lacking was the bunch of roses and a St Valentine's Day card.

Fyffes will make an initial payment of £3.1 million for the 50 per cent interest with a ceiling of one shamrock (or £7.5 million) contingent of Peviani profitability over the next two years.