May 23, 2006

Scottish councilors voice doubts over merger between fisheries

Scottish councilors has asked the Office of Fair Trading to advise the Competition Commission to block the proposed merger of three Norwegian-owned farmed salmon companies, as the merger would be detrimental to Scottish interests. 

The merger of Pan Fish, Marine Harvest and Fjord Seafood has been approved by the Norwegian Government, which has given Pan Fish permission to own up to a quarter of the national licensed biomass of farmed salmon.

Councilors are up in arms over the fact that the proposed merger would give the new entity control of 65 percent of salmon production in Scotland.

Scotland's Deputy environment minister Rhona Brankin has been chastised by independent producers for making conciliatory gestures towards the companies by inviting them to discuss plans for their Scottish operations.

Highland Council's vice-convener has now called on the OFT to block the merger.

The new Norwegian company would yield a monopoly over a Scottish resource and the OFT should be made to understand that, Councillor Michael Foxley said, calling for the merger to be blocked to limit its effects on Scotland.

Foxley added that the European Commission should be called upon to see whether the merger is acceptable.

If the EC endorses the merger, the Scottish industry would have to go into niche farming such as organic farming.

Councillor Foxley said that it was natural that Norway would give its blessing to the deal since it has the controlling interest. If the tables had been turned, Norway would certainly not have allowed Scotland to control its resources.

Pan Fish have indicated that the integration process would require approval from authorities not only from Scotland but Canada and Chile.