SalMar offers to acquire rival Norway Royal Salmon for $1.3bn

SalMar said that it proposes to acquire rival Norwegian fish farm company Norway Royal Salmon for NOK 270 ($29.94) per share, valuing the latter at around NOK 11.76 billion ($1.3 billion).

The offer from SalMar represents a premium of 12.5% to a previous offer of NOK 240 ($26.61) per share from Norwegian public transport company NTS ASA for Norway Royal Salmon. NTS ASA is already a major shareholder in Norway Royal Salmon.

SalMar said that the company and Norway Royal Salmon have various overlapping industrial interests in Northern Norway as well as the West Fjords in Iceland, and offshore.

According to SalMar, the combination with Norway Royal Salmon will bolster the competence and capacity, and position the two fish farm companies for further sustainable growth.

Norwegian fish farm company SalMar offers to acquire rival Norway Royal Salmon for $1.3bn. Photo courtesy of SalMar ASA.

In a statement, SalMar said: “Both Parties have long-standing presence in, and considerable competence from, salmon farming in Northern Norway. A Combination will allow for improved utilisation of the combined available MAB and site portfolio as well as implementation of best practices within operations and the cost structure.”

Furthermore, Norway Royal Salmon said that its new smolt facility in Dåfjord in combination with the existing smolt capacity of SalMar and the under construction Senja 2 and Tjuin facilities will be valuable resources for ensuring delivery of the right smolt at the right time.