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November 4, 2020

Norwegian seafood firms Nergard Holding, Norsk Sjomat merge

Two Norwegian seafood businesses have merged operations in a move the new group claims will strengthen the enlarged business and create jobs.

By Dean Best

Norwegian seafood businesses Nergard Holding and Norsk Sjomat have merged operations, with the combined entity expected to secure a stock market listing in the current quarter.

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  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
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The merger will provide greater resources and capabilities to strengthen Norway’s seafood industry and create jobs, Tommy Torvanger, the CEO of fish processor Nergard who will head up the new group, said in a statement.

Salmon and trout farmer Norsk Sjomat will keep its name under which the combined company will trade through facilities in Tromsø, northern Norway, and Stranda in the west of the country, employing more than 500 people.

Icelandic seafood company Samherji will hold a majority stake in the new business. Samherji has been an investor in Nergard since 2014 but will sell its 39.9% holding once a Stockholm listing is secured, “in order to obtain a sufficient number of transferable shares”.

Per Magne Grøndahl, who is CEO of Norsk Sjoma, will become chairman of the combined group’s board of directors.

Grøndahl said: “We will build a strong common corporate culture and a solid platform for growth, with more than 500 dedicated employees on land and at sea. This is a move that will bring out synergies between the wild fish and aquaculture industry.”

The new company will investment NOK1.2bn (US$128m) in the combined business to renew the fishing fleet, build a new facility, start production of “large smolts” and for new product development.

Torvanger added: “Together we are in a unique position in both aquaculture and fishing. This will create new Norwegian products with the highest quality, it will give fishermen new sales opportunities and it will create synergies between our factories and businesses.”

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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