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Weekly Overview: Mitsubishi Makes $1.4 Billion Offer for Cermaq

Lucy Towers
23 September 2014, at 1:00am

ANALYSIS - Mitsubishi Corporation, through its wholly-owned subsidiary MC Ocean Holdings Limited, has made a NOK 8,880 million ($1.4 billion) offer for the Norwegian salmon farming company Cermaq, writes Lucy Towers, TheFishSite Editor.

The Board of Directors of Cermaq has now entered into a Tender Offer Agreement with Mitsubishi.

"The offer recognises the financial and strategic value of Cermaq and delivers an attractive offer premium to the shareholders. In addition, Mitsubishi Corporation represents a strategic and industrial fit by strengthening Cermaq’s presence and reach in the important Asian markets. Together Cermaq and Mitsubishi Corporation will become the world’s second largest salmon farming company, set for further sustainable growth," said Rebekka Glasser Herlofsen, Chair of the Board of Directors of Cermaq. 

Last week, the European Court of Auditors (ECA) released a new report revealing that measures to support aquaculture in the period up to 2013 were not well designed and implemented at EU and Member State level, and that the European Fisheries Fund (EFF), as the funding instrument of the Common Fisheries Policy (CFP), failed to deliver value for money and effective support for the sustainable development of aquaculture. 

Kevin Cardiff, the ECA Member responsible for the report, commented that: “We found that the main objectives for growth of the aquaculture sector have not been met, and the sector has stagnated for many years.

"While the financial crisis undoubtedly contributed to this stagnation, the overall framework to support the sector was not well designed, and the actual measures taken were weak."

Also in the news, recent reports from Russian newspapers has suggested that Norwegian salmon is entering Russia through Belarus.

Russia placed a ban on imports of fish from Norway at the start of August but now it appears that salmon shipped from Norway is being processed in Belarus and then sent into Russia, skirting the ban.