Investors are going bananas for fruit producer Fyffes (FFY:AIM) following its recommendation of a €751m takeover by Japanese conglomerate Sumitomo Corporation (8053:TYO).

The Dublin-headquartered bananas, pineapples and melons distributor and recent Shares key pick jumps 45% higher to 187p as bid excitement swirls on Friday.

Japanese trader Sumitomo is stumping up €2.23 per share (roughly 189p) in cash to land Fyffes, the world's oldest fruit brand whose juicy growth story, defensive attributes and exciting moves into the North American mushroom market we chronicled here in September, the shares then trading at 128.8p.

The offer price not only represents a juicy 49% premium to yesterday's closing price, valuing Fyffes at a shade over €751m or £632.3m, it is also a portfolio-nourishing 37% premium to the all-time high share price of €1.62 reached in April this year.

In addition, Fyffes' shareholders will receive a €0.02 dividend for the 2016 financial year, bringing the total amount to €2.25 per share.

Chairman David McCann believes the transaction 'represents a compelling proposition for our shareholders and crystallises the substantial value created in recent years through the various strategic developments and the strong operating performance of our group.

'Our employees, customers, suppliers and joint venture partners will benefit from Fyffes being part of an enlarged group with greater scale, reach and resources to broaden and accelerate delivery of Fyffes' strategic objectives.'

The latest Japanese firm to snap up assets in other parts of the world, Softbank (9984:TYO) having acquired tech champion and microchip designer ARM for £24bn in the summer, Sumitomo is paying a premium price to pocket Fyffes, one of few international players in a fragmented tropical produce industry.

Fyffes, whose proposed merger with Chiquita Brands collapsed in 2014, operates in a relatively stable fruit production and distribution sector and has fabulous brand recognition; the Fyffes name has been associated with bananas since the 1880s.

Sumitomo believes that Fyffes' 'strong position as an international grower, importer and distributor of high quality produce in complementary markets makes it a natural fit with Sumitomo's organisation.'

A sprawling global trading group, consisting of more than 800 companies and with 65,000 staff, Sumitomo has itself been active in the banana industry since the 1960s.

Sumitomo is in fact the market leader in Asia, with plantations in the Philippines and retail distribution across the Asian region. It also imports roughly 30% of the bananas that wing their way into Japan.

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