July 22, 2010

 

Chilean fishing companies to merge

Two leading Chilean fishing companies Pesquera Coloso and Pesquera Iquique-Guanay (Igemar) signed an agreement to merge their respective subsidiaries, Pesquera San Jose and SouthPacific Korp (SPK), and create a new company that will manage and develop the fishing business.

 

Coloso and Igemar aim with this strategy to better face a more restrictive scenario in terms of catches.

 

Pesquera Coloso would have 40% of the shares of the new company and Igemar 60%, according to reports.

 

SPK should undertake a capital increase of US$75.7 million, being a smaller company than San Jose.

 

It is anticipated that the merger should take place by November 30, 2010, after fulfilling the conditions laid down in the agreement.

 

"The merger agreement provides for an option on Coloso by 10% or 20% of the shares of the merged company that may be exercised in 2013 or 2016," said the general manager of Pesquera Coloso, Domingo Jimenez.

 

The new company will develop their fishing activities between regions III and X, and will have plants in regions VI, VIII and Los Lagos.

 

Pesquera San Jose and SPK specialise in the production of fishmeal and fish oil, but are also pushing the development of canned and frozen products.

 

The new company will have to face the complex and demanding current and future scenario of the fishing industry, especially in the Bío Bío Region, the two companies said in a statement.

 

This business union represents the best alternative to contribute to the revival of the sector in the region and secure the foundations of sustainable development in the future, they added.