May 8, 2006

Pan Fish receives approval for 3-in-1 merger

Pan Fish ASA has received approval from Norway's Ministry of Fisheries and Coastal Affairs to own up to a quarter of the national licensed biomass for farmed salmon and trout in the sea.

Pan Fish acquired Marine Harvest in March. In addition, Pan Fish also recently acquired a majority ownership in Fjord Seafood. This merger means the company would emerge with 23.7 percent of the national licensed biomass in Norway.

Because of this, the company is obliged by law to seek permission from the ministry to own this much of the national production.

The Ministry of Fisheries and Coastal Affairs has set out four conditions in giving its approval. 

Pan Fish is obliged to sustain an annual growth of 5 percent minimum. Secondly, the processing volumes in coastal areas should increase by 10 percent annually.

Thirdly, Pan Fish should update the Ministry of Fisheries and Coastal Affairs with regards to the above-mentioned conditions and on its number of employees in Norway.

Pan Fish also needs to declare the company's indirect ownerships in licensed biomass for farmed salmon and trout in the sea

Pan Fish is pleased with the ministry's speedy consideration in allowing the merger and giving the company the opportunity to own Fjord Seafood, said CEO Atle Eide, adding that the conditions set out are in line with the company's aims.

The decision is a unique opportunity for establishing a Norwegian owned, leading international company in a fast growing global market, said Eide.