Mowi's acquisition of Nova Sea finally approved
The purchase has been given the green light from Norway after approval by the EU
Mowi today announced that Norwegian competition authorities have now approved the acquisition of Nova Sea.
The approval follows hard on the heels of the deal receiving the thumbs up from the EU, and thus all necessary permits are in place. The transaction, which increases Mowi's shareholding in Nova Sea from 49% to 95%, can now be completed. Mowi plans to proceed with a voluntary offer to the shareholders who hold the outstanding 5%.
Will produce 600,000 tonnes
Nova Sea produces around 40,000 gutted weight tonnes of salmon annually, and its acquisition means Mowi will have an expected harvest volume of 597,000 tonnes in 2025, of which 372,000 tonnes are from Norway and 161,000 tonnes in Northern Norway, in what Mowi calls one of the world's best regions for farming Atlantic salmon.
In just a few years, Mowi has gone from producing 400,000 tonnes globally to now producing 600,000 tonnes. This corresponds to an annual growth of 6.9% compared to the industry average of 3.6%.
"The Nova Sea acquisition is a strategically important transaction for Mowi that will be a catalyst for sustainable growth in Northern Norway. We will continue to grow throughout the value chain and will invest even more in Northern Norway going forward. We will create more jobs and increasingly more activity along the coast," said Mowi chief executive Ivan Vindheim.
A very good fit
Vindheim believes that Mowi and Nova Sea are a very good fit, and the merger is expected to result in significant synergies, including improved capacity utilisation and location portfolio in the company's northernmost region. The preliminary estimate amounts to NOK 400 million in synergies on an annual basis.
“With this, we are strengthening our presence in what is probably the best area in the world to farm Atlantic salmon. In addition, the merger will improve our biological performance and biosecurity in this region,” said Vindheim.
