Who is the banana republic now? Two Brazilian companies have made a bid for the iconic Chiquita banana brand, currently American-owned. BBC reports:
Juice maker Cutrale and conglomerate Safra have offered $13 a share, a 29% premium to Chiquita’s closing share price on Friday.Chiquita shares jumped 31% in New York after the bid was announced.The offer rivals the proposed merger between Chiquita and Irish fruit firm Fyffes, announced in March. Shares in Fyffes fell 15% in London.The merger would create the world’s largest banana company worth $1bn.
Americans shouldn’t worry. As countries like Brazil discover that the world’s capitalist system offers them chances to get rich, they begin to lose the stale neo-Marxist reflexes that block their development. As a result, the global system of liberal capitalism becomes that much more dynamic and deeply implanted, and all the countries grafted into it, including Brazil, get richer and more prosperous. If Brazil becomes the new banana republic, the country will get that much closer to enthusiastically backing and enriching the global system.