Tags: japan | itochu | dole | food

Japan's Itochu in Talks to Buy 2 Dole Food Businesses

Wednesday, 12 September 2012 03:24 PM

Japanese trading house Itochu Corp plans to buy Dole Food Co Inc's global canned-fruit and juice-beverage business and its fruit and vegetable business in Asia for an estimated $1.7 billion, the Nikkei news service reported.

Dole Food later said it was in advanced talks with Itochu for a possible sale of its packaged foods and Asia fresh businesses.

"No definitive agreements have been signed at this time and Dole continues to be in discussions with several other parties regarding these assets and others," the company said.

The Nikkei said Itochu and Dole Food, the world's largest fruit and vegetable company, want to reach an agreement this month.

Itochu was not available for comment outside business hours in Japan.

Dole Food, founded in 1851, has struggled with volatile demand and low prices for bananas, its biggest-selling product.

The company, which began exploring strategic options in May, said in July it was in talks to sell or spin off its packaged foods business and was considering a deal in Asia.

Dole Food's packaged foods business includes canned pineapple, canned pineapple juice, fruit juice concentrate, fruit in plastic cups and other packages and frozen fruit.

Its other businesses sell fresh bananas, pineapples and berries, and more than 20 different types of fresh vegetables as well as bagged salads.

Shares of Dole, which went public in October 2009, rose about 13 percent to a record high of $15.16 on the New York Stock Exchange on Wednesday.

© 2019 Thomson/Reuters. All rights reserved.

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Wednesday, 12 September 2012 03:24 PM
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