Norwegian salmon farming major Mowi is to acquire Vigner Olaisen’s 46% stake in local peer Nova Sea for Nkr7.4bn ($655m), effectively giving it control of the business.
The seafood group has held a minority stake in Nova Sea since 1995. Following the transaction, Mowi’s ownership in Nova Sea will increase from 49% to 95%.
Under the terms of the agreement, 30% of the payment will be made in Mowi shares, while 70% will be in cash.
The transaction is said to value Nova Sea at Nkr16bn.
Mowi will also extend a voluntary cash offer of Nkr800m to shareholders owning the remaining 5% of Nova Sea.
Subject to necessary approvals and closing conditions, the deal is anticipated to close in the second half of this year.
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By GlobalDataMowi CEO Ivan Vindheim said: “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 organisation 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.”
In conjunction with the stake acquisition, Nova Sea board chairman Aino Olaisen will be proposed as a new board member at Mowi.
Nova Sea operates in production area eight in northern Norway and manages the full salmon farming value chain, from broodstock and smolt production to harvesting and sales.
The company anticipates harvesting 52,000 tonnes of salmon this year.
With the increased ownership, Mowi and Nova Sea together are expected to harvest 157,000 tonnes of salmon in northern Norway in 2025, contributing to a total 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 improved capacity utilisation and targeted investments to enhance fish health.
In September last year, Mowi stated that it aims to realise up to €400m ($446.3m) in cost savings over the next five years, largely through new technologies.
