Norwegian salmon farming leader Mowi is set to acquire Vigner Olaisen’s 46% stake in local competitor Nova Sea for Nkr7.4bn ($655m). This acquisition will effectively grant Mowi control over Nova Sea.
Mowi has maintained a minority stake in Nova Sea since 1995. Following this transaction, Mowi’s ownership will increase from 49% to a commanding 95%.
According to the terms, 30% of the payment will be in Mowi shares, while the remaining 70% will be paid in cash.
This agreement values Nova Sea at approximately Nkr16bn.
Additionally, Mowi plans to extend a voluntary cash offer of Nkr800m to shareholders holding the remaining 5% of Nova Sea.
Subject to required approvals and closing conditions, Mowi expects the deal to finalize in the latter half of this year.
Mowi CEO Ivan Vindheim stated: “Nova Sea is a frontrunner in the Norwegian aquaculture industry, recognized for its excellent biological performance and industry-leading margins.”
He further elaborated, “Over 50 years, the company and the Olaisen family have invested in the organization, transforming it into an impressive, fully integrated operation. Thus, it brings us great pleasure that we are now, after 30 years, combining our operations.”
Additionally, Nova Sea’s board chairman, Aino Olaisen, will be nominated as a new board member at Mowi.
Operating in production area eight in northern Norway, Nova Sea manages the entire salmon farming value chain from broodstock and smolt production to harvesting and sales.
This year, the company anticipates harvesting 52,000 tonnes of salmon.
With increased ownership, Mowi and Nova Sea are projected to harvest a combined total of 157,000 tonnes of salmon in northern Norway by 2025, contributing to a total harvest volume of 367,000 tonnes in Norway and 572,000 tonnes globally.
Mowi expects this integration to generate annual synergies of approximately Nkr400m, driven by improved capacity utilization and strategic investments focused on fish health enhancement.
Last September, Mowi announced plans to realize up to €400m ($446.3m) in cost savings over the next five years, primarily through new technologies.
