 |
DEL MONTE ESCAPES ITALIAN MONOPOLY CHALLENGE
(Banana Trade News Bulletin, July 1997)
A case was brought in January in Italy challenging the take-over of Fresh Del Monte Produce (FDMP) by the IAT Group (see Bulletin No. 8, 'Del Monte Goes Truly Transnational'). The legal challenge, brought under Italian competition law, found that the IAT Group's acquisition of FDMP did not constitute a threat to fair competition in the Italian fresh produce market. However, the investigation revealed more details of the complex new ownership structure surrounding Del Monte's fresh fruit operations.The IAT Group Inc. is a financial holding company registered in the Cayman Islands, with its administrative headquarters and shareholders in the United Arab Emirates. IAT has controlling shares in a numerous companies operating in many countries of the world, mainly involved in the production and distribution of fruit and vegetables (grapes, plums, peaches, kiwis, pears, citrus, pineapples and bananas). In 1995, IAT had global sales of and US$250 million, US$85 million of which in the EU market.
FDMP, previously owned by the Grupo Empresarial Agricola Mexicana (GEAM) and registered in the Dutch Antilles, produces and distributes its own brand bananas, pineapples and melons through an independent company, Simba Spa., which has an exclusive distribution contract with FDMP. In 1995, global sales of FDMP reached US$1.25 billion, US$420 million of which was in the EU (and US$153 in Italy alone).
In the 1996 take-over, IAT Group also acquired Global Reefer Carriers Ltd., a US-registered shipping company, most of whose business is shipping fruit for FDMP. Global has shares in various companies, including an importer-distributor and shipping company active in the Northern European market. One hundred per cent of both FDMP and Global shares were acquired by two Cayman Island based companies: Freshglo Ltd. acquired 100% of FDMP shares, whilst FDM Holdings Ltd., controlled entirely by Freshglo, acquired 100% of the shares of Global Reefer Carriers.
(Source: Bolletino no. 3 della Autorità Garante della Concorrenza e del Mercato (Provvedimento no. 45493), 3/2/97)
|