Scottish Sea Farms gets green light for £164m Grieg Shetland takeover
The UK’s Competition and Markets Authority (CMA) has cleared Scottish Sea Farms’ bid to acquire Grieg Seafood Hjaltland UK (Grieg Shetland), paving the way for the deal to complete.
In June this year, Scottish Sea Farms (SSF) – which is co-owned 50/50 by Lerøy Seafood Group and SalMar ASA – signed a share purchase agreement to acquire 100% of the shares in Grieg Seafood Hjaltland UK from Grieg Seafood ASA for £164 million.
The deal includes Grieg’s freshwater hatchery, processing facility and 21 marine farms around the Shetland Islands and Isle of Skye which, combined, produced approximately 16,000 gutted weight tonnes of Atlantic salmon in 2020.
This complements the geography of SSF’s own operations across mainland Scotland, Shetland and Orkney, putting it on track to produce 46,000 tonnes in 2022.
SSF managing director Jim Gallagher said: “This is hugely positive news that promises farmers from both companies greater opportunity than ever before to create the best growing conditions, working collectively as one team with regards to the key factors of fish health, stocking regimes and sea lice management.
“This, in turn, will enable us to offer customers a more secure and stable supply of premium quality Scottish farmed salmon.”
It is anticipated that the acquisition, which will be financed with 100% cash consideration from Scottish Sea Farms, will complete as early as the end of this month.