The merger between Cermaq and Marine Harvest would have impacts in Chile as well as abroad. (Photo: Marine Harvest/Fis)

Merged Marine Harvest and Cermaq would have 20pc of salmon concessions

CHILE
Friday, May 24, 2013, 23:50 (GMT + 9)

If the merger between the Norwegian salmon firms Marine Harvest ASA and Cermaq ASA takes place, the combined company would concentrate 20 per cent of the Chilean salmon concessions, representing 243 of a total of more than 1,200 in the country.

The agreement between the two huge firms from Norway could be reviewed by the National Economic Prosecutor of Chile because of the fact that not only would it have impact abroad, but it would also have implications for the Chilean market.

A new door opened for Marine Harvest plans after Cermaq’s shareholders failed to gather enough votes to move forward with the proposal to buy the Peruvian fishing firm Copeinca.

Marine Harvest had offered to pay USD 1,700 million to buy its Norwegian rival firm.

According to an analyst consulted by the newspaper La Tercera, there is a new scenario for the merging operation to be performed, since the international aquaculture industry needs consolidation and creating synergies.

"It's very likely for the transaction to be performed because somehow the sector needs to be strengthened, and the only way to survive will be that," he stressed.

"The operation reveals the companies’ better situation as to liquidity terms, which shows they can overcome health crises or bad price cycles more easily," he added.

Currently, Marine Harvest owns a subsidiary in Chile with that same name.

Cermaq, meanwhile, has Mainstream and the fish feed company Ewos.

If the merger is completed, the new company would total more than 500,000 tonnes worldwide, representing nearly 30 per cent of the 1,783,000 tonnes of the global production last year.

Related articles:

- Cermaq AGM says no to Copeinca deal
- Marine Harvest changes conditions for its bid on Cermaq

By Analia Murias
editorial@fis.com
www.fis.com

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