Mowi’s acquisition of a majority share in seafood peer Nova Sea is currently under scrutiny by the European Commission.
In January, the Norwegian seafood giant announced its intention to boost its stake in Nova Sea by acquiring an additional 46% previously held by investor Vigner Olaisen. This move would provide Mowi with a remarkable 95% controlling share.
On September 22, the EU public authority announced it is inviting comments from interested parties regarding the transaction, after receiving notification of the deal on September 12.
The EC is providing a ten-day window for comments from the date of its statement.
Upon a preliminary examination, the EC indicated that the transaction “could fall within the scope of the Merger Regulation,” although it reserved the final decision on this point.
The deal involves Mowi acquiring Vigner Olaisen’s stake in Nova Sea for Nkr7.4bn ($748m).
Notably, Mowi has held a minority stake in Nova Sea since 1995. The business disclosed that 30% of the payment for the additional interest will be in Mowi shares, while 70% will be in cash.
This transaction values Nova Sea at Nkr16bn.
The EC clarified that Mowi’s business activities encompass the full value chain for Norwegian Farmed Atlantic Salmon (NFAS), including “feed, farming, global sales, and processing,” whereas Nova Sea is primarily involved in farming and primary processing.
Mowi will also extend a voluntary cash offer of Nkr800m to shareholders holding the remaining 5% of Nova Sea.
Mowi CEO Ivan Vindheim commented in January: “Nova Sea is a frontrunner in the Norwegian aquaculture industry and is known for its excellent biological performance and industry-leading margins.”
“Over 50 years, the company and the Olaisen family have invested in the organization and developed it into an impressive, fully integrated operation. It is therefore with great pleasure that we are now, after 30 years, combining our operations.”
Alongside the stake acquisition, Nova Sea board chairman Aino Olaisen is set to be proposed as a new board member at Mowi.
For 2025, Nova Sea anticipates harvesting 52,000 tonnes of salmon.
With the expanded ownership, Mowi and Nova Sea together are projected to harvest 157,000 tonnes of salmon in northern Norway in 2025, contributing to a total anticipated harvest volume of 367,000 tonnes in Norway and 572,000 tonnes globally.
Mowi expects the integration to generate synergies of approximately Nkr400m annually, driven by enhanced capacity utilization and targeted investments to improve fish health.
