Cermaq Buys Three Salmon Plants From Norway Peer Grieg Seafood

Fresh full salmon connected a furniture of ice. Credit: Stockfour/Shutterstock

Cermaq plans to get 3 salmon processing accommodation from Norwegian adjacent Grieg Seafood for Nkr10.2bn ($988.6m).

The acquisition of nan sites – 1 successful Finnmark, Norway, and 2 others successful Canada successful British Colombia and Newfoundland – is taxable to support by nan “relevant” title regulators, Cermaq, a European subsidiary of Japan’s Mitsubishi Corp., said successful a connection coming (17 July).

Separately, Grieg Seafood said nan disposals besides see its income organisation successful North America arsenic nan salmon processor seeks to attraction operations connected Rogaland successful Norway.

Cermaq CEO Steven Rafferty said nan works acquisitions will “strengthen our competitiveness and lend to growth”.

He added: “We person profound respect for Grieg Seafood and their pioneering initiatives arsenic a world institution pinch a long-lasting legacy.

“With dedicated labor and operations successful respective regions wherever Cermaq operates today, we judge nan companies are an fantabulous lucifer pinch a communal extremity for sustainable and innovative operations.”

Asked by Just Food to corroborate nan processes conducted astatine nan 3 accommodation and whether immoderate jobs will beryllium lost, aliases successful truth retained, a spokesperson for Oslo-based Cermaq declined to comment, saying nan institution was restricted by nan regulatory proceedings.

Grieg Seafood confirmed nan works income and transaction value successful its ain connection from Nina Willumsen Grieg, who took connected nan CEO role connected an interim ground successful March to switch Andreas Kvame.

“This transaction will position some Grieg Seafood and nan regions for nan future. It allows america to ore attraction and resources successful Rogaland,” she said. “We purpose to proceed to beryllium a beardown character successful nan advancement of sustainable aquaculture successful Norway.”

This publication has besides asked Grieg Seafood to corroborate nan quality of nan 3 operations, nan early of employees, and whether Ms Grieg has taken connected nan CEO domiciled connected a imperishable basis.

In a Euronext filing, Grieg Seafood said nan transaction pinch Cermaq is expected to adjacent successful nan last 4th of this twelvemonth taxable to regulatory approval. The institution will supply much accusation connected its “strategic direction” erstwhile second-quarter results are issued connected 26 August.

Meanwhile, successful a abstracted presentation, Grieg Seafood said nan transaction will person nary effect connected its “ownership” successful Tytlandsvik Aqua and Årdal Aqua, while its new value-added processing site successful Gardermoen, Norway, will stay pinch nan business.

First-quarter results issued successful May showed Grieg Seafood booked income of Nkr2.18bn, down 4.8% from a twelvemonth earlier. Harvest volumes fell to 20,770 tonnes GWT, from 21,075.

EBITDA declined 14% to Nkr381m, while profit earlier taxation remained successful nan reddish pinch losses widening to Nkr603m from Nkr301m.

Issuing nan fiscal 2024 results successful February, Grieg Seafood said it booked a Nkr1.74bn impairment “due to changes and uncertainty successful Canada”.

Kvame, still CEO astatine nan time, explained: “While Rogaland continued to present beardown operational and financial performance, nan 4th fourth continued to bring difficult operating conditions and adverse biologic events successful Finnmark.

“In Canada, we maintained a cautious attack successful British Columbia fixed nan persisting governmental uncertainty and worked to find a bully measurement guardant for our operations successful Newfoundland.”

For nan afloat year, income gross astatine Grieg Seafood roseate 5.1% to Nkr7.38bn. Harvest volumes climbed 7.9% to 77,704 tonnes GWT.

However, EBITDA slumped to Nkr659m from Nkr1.33bn. The institution delivered a nett nonaccomplishment of Nkr2.45bn versus a Nkr560m profit successful fiscal 2023.