May 10, 2006

Fish farm merger faces opposition in Scotland

While a proposed merger between salmon producers Pan Fish, Marine Harvest and Fjord Seafood have received approval in Norway, it may face a public inquiry in Scotland.

The merger between three of the world's largest farmed salmon producers would have given the new entity control of 65 percent of production in Scotland, compared with roughly 25 percent in Norway.

So far, the Office of Fair Trading in Scotland has given no indication it would recommend an investigation by the Competition Commission.

MSP Rob Gibson has urged investigations into the matter and recommended a Commission inquiry because of the merger's implications for jobs at the three companies. He also asked for a public inquiry to discuss the impact of the merger on the industry's future.

Gibson said a public inquiry is necessary to see if a company with almost monopolistic control of the country's farmed salmon would be beneficial for the industry.

He said the local industry should focus on quality rather than quantity and not follow Norway's example.