Norwegian seafood major Mowi has said its bid for an increased stake in Nova Sea has been approved by the European Commission.
Clearance was given on Friday (17 October) for Mowi to raise its interest in its Norway-based salmon farming and processing peer to 95% from 49%, an acquisition announced in January.
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Mowi is taking the additional shares from Nova Sea investor Vigner Olaisen for Nkr7.4bn ($736.2m today).
The European Commission (EC) only became aware of the deal in September, when the regulatory body of the EU invited parties to comment given the operating activities of the two companies.
While Mowi is engaged across the full value chain for Norwegian Farmed Atlantic Salmon (NFAS) through feed, farming, sales and processing, Nova Sea’s business revolves around just farming and primary processing, the EC said.
The EC said today (20 October) that the transaction was examined under the normal merger review procedure.
“The Commission concluded that the notified transaction would not raise competition concerns given its limited impact on competition in the markets where the companies are active,” it said in a statement.
Announcing the EC approval in a statement on Friday, Mowi said the transaction still needs to be rubber-stamped by Norway’s competition regulator.
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By GlobalDataWith the increased ownership, Mowi and Nova Sea together are expected to harvest 157,000 tonnes of salmon in northern Norway in 2025, contributing to a total harvest volumes of 367,000 tonnes in Norway and 572,000 tonnes globally, it was revealed in January.
Mowi said it expected the integration to generate synergies of around Nkr400m annually, driven by improved capacity utilisation and targeted investments to enhance fish health.
It is also seeking to acquire the remaining 5% stake in Nova Sea from other shareholders to the tune of Nkr800m.
Mowi also provided a third-quarter trading update last week, noting unprecedented salmon harvest volumes of 166,000 gutted-weight tonnes (GWT), up from 161,000 in the corresponding quarter.
Ahead of the final figures on 5 November, Mowi reported an operational EBIT of around €112m ($130.6m) for the third quarter, compared to final prints of €173m and €203.1m in the same quarters of the past two years.
For consumer products, operational EBIT for the current third quarter was €66m, which would exceed the all-time high of €43.5m a year earlier.
Mowi’s total revenues for the third quarter of last year reached €1.4bn.
