Chiquita Brands International has completed the $52 million sale of its banana-producing and port operations in Colombia.
The concern was sold to Invesmar Ltd, the holding company of CI Banacol SA. Banacol is a Colombia-based producer and exporter of bananas and other fruit.
Copies of the sale agreement and other related documents were filed with the US Securities and Exchange Commission on June 14 after Chiquita itself disclosed that the US department of justice was investigating activities at one of Chiquita's banana producing operations in Colombia.
The subsidiary under investigation had apparently made payments to local organisations to protect Chiquita employees from risks to their security. The Cincinnati-based banana multi-national disclosed the information to the US authorities once it found out that the local groups were designated as foreign terrorist organisations under US law.
The discovery undoubtedly contributed to Chiquita's decision to sell, although it is also reported saying it has been trying to limit its exposure to weather and foreign currency related risk.
Meanwhile, Chiquita is forecast to record an after-tax loss on the sale of some $5m. Its Colombian operations had accounted for nine per cent of its total banana volume and it is expected to continue to buy Colombian bananas from Banacol as part of the deal.
