Mowi’s Additional Stake In Nova Sea Attracts Eu Scrutiny

Slices of salmon. Credit: Caroline Attwood/Unsplash/ caroline-attwood-kC9KUtSiflw-unsplash

Mowi’s acquisition of a mostly stock successful seafood adjacent Nova Sea has been put nether scrutiny by nan European Commission.

The Norwegian seafood elephantine announced successful January it would summation its liking successful Nova Sea by snapping up an further 46% successful nan salmon processor held by investor Vigner Olaisen. That would springiness Mowi a 95% controlling share.  

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Just Food has contacted Mowi for comment.

The woody would spot Mowi taking Vigner Olaisen’s liking successful Nova Sea for Nkr7.4bn ($748m currently).

The seafood group has held a number liking successful Nova Sea since 1995. The business said 30% of nan costs for nan further liking will beryllium made successful position of Mowi shares, while 70% will beryllium successful cash.

The woody is said to worth Nova Sea astatine Nkr16bn.

The EC explained that nan business activities of Mowi screen nan afloat worth concatenation for Norwegian Farmed Atlantic Salmon (NFAS), done “feed, farming and world income and processing”, while Nova Sea is only progressive successful nan farming and superior processing portion of nan proviso chain.

Mowi will besides widen a voluntary rate connection of Nkr800m to shareholders owning nan remaining 5% of Nova Sea.

Mowi CEO Ivan Vindheim said successful January: “Nova Sea is simply a frontrunner successful nan Norwegian aquaculture manufacture and is known for its fantabulous biologic capacity and industry-leading margins.

“Over 50 years, nan institution and nan Olaisen family person invested successful nan organisation and developed it into an impressive, afloat integrated operation. It is truthful pinch awesome pleasance that we are now, aft 30 years, combining our operations.”

In conjunction pinch nan liking acquisition, Nova Sea board chairman Aino Olaisen will beryllium projected arsenic a caller committee personnel astatine Mowi.

Nova Sea anticipates harvesting 52,000 tonnes of salmon successful 2025.

With nan accrued ownership, Mowi and Nova Sea together are expected to harvest 157,000 tonnes of salmon successful bluish Norway successful 2025, contributing to a full harvest measurement of 367,000 tonnes successful Norway and 572,000 tonnes globally.

Mowi said it expects nan integration to make synergies of astir Nkr400m annually, driven by improved capacity utilisation and targeted investments to heighten food health.