Two companies fool with an edible kernel (7)
I believe the answer is:
coconut
'an edible kernel' is the definition.
The answer and definition can be both plants as well as being singular nouns.
Perhaps you can see a link between them that I can't see?
'two companies fool' is the wordplay.
'two companies' means two replacements for 'company'.
'company' becomes 'co' (abbreviation).
'company' becomes 'co' (abbreviation).
'fool' becomes 'nut'.
'co'+'co'+'nut'='COCONUT'
'with' is the link.
Can you help me to learn more?
(Other definitions for coconut that I've seen before include "Shy occupier" , "Hairy, milk-containing fruit of the palm" , "Large seed; head" , "Large hard seed" , "Shy target?" .)