October 4, 2022

 

Mowi cancels acquisition of MAB growth following Norway's resource tax proposal

 

 

Mowi announced that it is canceling its acquisition of 914 tonnes Maximum Allowable Biomass (MAB) for a total value of kr183 million (US$17.2 million), in light of the Norwegian government's proposal for a 40% resource tax on aquaculture in Norway and a resulting total tax of 62%.

 

The government's tax proposal means that Mowi can no longer justify the purchase price, the company said.

 

Mowi also advised the government to reconsider its resource tax proposal, given the importance of the aquaculture industry for Norway's future. It said the proposal will severely damage the ability to make investments.

 

Furthermore, a tax rate of 62% will put an end to several major investment plans along the Norwegian coast, leading not only to less employment locally but also to a massive diversion of funds away from coastal communities, Mowi noted.

 

If the proposal for 62% tax is approved by the Norwegian parliament, the country's aquaculture industry will face the biggest setback in its 50-year history, and Norway could gradually lose its leading position in aquaculture to other countries, the company warned.

 

- Mowi

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