June 1, 2022

 

Major Norwegian aquaculture firms SalMar and Norway Royal Salmon to merge

 

 

Major Norwegian aquaculture companies SalMar and Norway Royal Salmon (NRS) have agreed to merge, with SalMar as the acquiring company, Fish Information & Services reported.

 

The goal of the merger is to boost value generation in the regions where the firms operate while also allowing the companies to realise synergies.

 

The merger is conditional on NRS completing its takeover of SalmoNor immediately prior to the merger's completion, as well as the fulfilment or termination of all requirements for the execution of SalMar's voluntary offer for NTS shares, or the voluntary offer being completed.

 

Both firms have agreed to a proposed exchange ratio of 0.369 SalMar shares per NRS share. SalMar's volume-weighted average closing price on the Oslo Stock Exchange from 4 April to 20 May amounted to NOK 265.18 (~US$28.33; NOK 1 = US$0.11) per share in NRS, a premium of 6.3% over the closing price on 27 May and 12.1% above the NRS average closing price for the prior 30 days.

 

The companies have various overlapping industrial interests, both in Norway, Iceland's West Fjords, and offshore aquaculture.

 

The merger will allow for higher capacity utilisation of the combined MAB and production site portfolio, as well as improved operations and cost structure.

 

Together with the firms' existing smolt capacity, NRS' new smolt plant in Dfjord outside of Troms and SalMar's development of the Senja 2 and Tjuin plants will be valuable resources for ensuring the delivery of the right smolt at the right time and facilitating improved biological performance throughout the value chain.

 

The merger will also guarantee considerable extra volumes for SalMar's new processing plant in Senja, InnovaNor. This will result in cost savings and a reduction in biological risk as a result of enhanced capacity utilisation and logistics.

 

SalmoNor has businesses across the value chain and has a long track record of success. SalMar's operations in Central Norway will be supplemented by SalmoNor's operations in Rrvik, which is located in production area 7.

 

Both SalMar and NRS have made major investments in offshore farming technology, which has the potential to create tremendous synergy.

 

-      Fish Information & Services