Producer Joyvio Group announced the deal with Golden Wing Mau Group, saying the new company would have an overall annual turnover of US$771m.
"By uniting together, the merged company will form a balanced and sustainable supply chain that extends from farm to table and form a professional team with expertise in all links," said GWM chairman Liao Maohua.
The two business groups comprise around 50 individual companies. While analysts have applauded the potential of the merger to rationalise and strengthen the supply chain, some have expressed doubts that the disparate structure of the new company could integrate smoothly.
"China needs large, professional and well-capitalised agricultural businesses, but I get a bit nervous though when I hear about merging two companies with many sub-entities while at the same time pushing forward aggressive expansion plans," Torsten Stocker, partner at AT Kearney, told Just-food.
"The dangers of ponderousness, complexity and differing agendas are often underestimated.”
Other analysts hold the strategic merger of Joyvio and GWM as being an important step to increasing competitiveness in China’s fruit business, and showed that the industry had evolved from being a traditionally regional format to one that is now more wide-ranging in scope.
Chen Shaopeng, president of Joyvio Group, said: "China's fruit industry will enter a new stage with upgraded industrial chain, globalised presence and scaled development.
“The new merged company is committed to becoming a fruit company with global influence and providing more safe, quality and flavoursome fruits to customers."