Mowi increases control in Nova Sea after EU approval
The Norwegian seafood group secures European Commission clearance to raise its stake in Nova Sea to 95% as it moves to acquire full ownership.
NORWAY – Norwegian seafood producer Mowi has received approval from the European Commission (EC) to increase its ownership in salmon farming company Nova Sea to 95%.
The clearance, granted on Friday, October 17, allows Mowi to expand its holding from 49% after reaching an agreement in January to buy additional shares from investor Vigner Olaisen for about US$736 million.
The EC was notified of the transaction in September and launched a review to assess potential competition concerns due to the overlapping operations of the two Norwegian salmon producers.
In its findings released on October 20, the EC said the review was conducted under the standard merger control procedure and determined that the deal would not significantly affect competition in the markets where the companies operate.
According to the regulator, Mowi’s business spans the entire value chain for Norwegian farmed Atlantic salmon, including feed production, farming, processing, and sales, while Nova Sea focuses mainly on farming and primary processing.
The deal still requires clearance from Norway’s competition authority before it can be finalized, Mowi said in a statement on Friday.
Expected growth and synergy plans
Following the transaction, Mowi and Nova Sea are expected to jointly harvest about 157,000 tonnes of salmon in northern Norway in 2025, contributing to Mowi’s total forecast of 367,000 tonnes in Norway and 572,000 tonnes globally.
The company expects the integration to generate annual savings of around US$39.8 million, supported by improved utilization of production capacity and new investments aimed at enhancing fish health.
Mowi has also submitted an offer to buy the remaining 5% stake in Nova Sea from other shareholders for approximately US$86 million.
Strong harvests but lower profits
The acquisition news follows Mowi’s third-quarter trading update, in which the company reported record salmon harvest volumes of 166,000 gutted-weight tonnes, up from 161,000 tonnes a year earlier.
However, operational earnings before interest and taxes (EBIT) for the quarter were around US$130.6 million, down from US$173 million and US$203 million in the same periods in the previous two years.
The company’s consumer products segment performed strongly, posting an estimated operational EBIT of US$76.9 million, surpassing last year’s all-time high of US$50.6 million.
Mowi’s total revenues for the third quarter of last year stood at approximately US$1.4 billion, with the company set to release its final results for this year’s third quarter on November 5.
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