Thai Union Frozen is reportedly weighing up whether to cut its stake in US tuna brand, Chicken of the Sea, to facilitate its planned acquisition of another seafood business in the country, Bumble Bee Seafoods.
CEO Thiraphong Chansiri told reporters a reduction of its shareholding in Chicken of the Sea was one of the options TUF was considering to help get approval for the proposed US$1.5bn deal, which is pending approval from US authorities.
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"We are considering every option. We have not made decision about the divestment and it should become clear within the next four to six weeks," Thiraphong said.
TUF announced the acquisition of Bumble Bee Seafoods last December from private-equity firm Lion Capital. However, the US Department of Justice subsequently launched an antitrust investigation of TUF's U.S. subsidiary Tri-Union Seafoods LLC, which operates Chicken of the Sea.
According to reports a lawsuit has been filed by New York-based food distributor Olean Wholesale Grocery Cooperative alleging TUF and Bumble Bee of price-fixing on canned Tuna.
The US is TUF's biggest market, contributing 42% percent of sales in the first half.
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By GlobalDataTUF could not be reached for comment at time of press.
