CMA clears Scottish Sea Farms’ acquisition of Grieg UK

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The UK’s Competition and Markets Authority (CMA) has cleared Scottish Sea Farms’ bid to acquire Grieg Seafood Hjaltland UK, paving the way for the deal to complete. 

In June 2021, Scottish Sea Farms – which is co-owned 50/50 by Lerøy Seafood Group and SalMar  – signed a Share Purchase Agreement to acquire 100 per cent of the shares in Grieg Seafood Hjaltland UK from Grieg Seafood  for the purchase price of £164 million.

Included in the deal are the company’s freshwater hatchery, processing facility and 21 marine farms around the Shetland Islands and Isle of Skye which, combined, produced approximately 16,000 tonnes (HOG) of Atlantic salmon in 2020.

The acquisition puts the salmon farmer on track to produce 46,000 tonnes by 2022.

ScottishSeaFarms Managing Director Jim Gallagher. ©ScottishSeaFarms

Commenting on the CMA announcement, Scottish Sea Farms Managing Director Jim Gallagher said: “This is hugely positive news that promises farmers from both companies greater opportunity than ever before to create the best growing conditions, working collectively as one team with regards to the key factors of fish health, stocking regimes and sea lice management.

“This, in turn, will enable us to offer customers a more secure and stable supply of premium quality Scottish farmed salmon.”

It is anticipated that the acquisition, which will be financed with 100 per cent cash consideration from Scottish Sea Farms, will complete as early as year-end.