Norwegian cod farmers announce merger Published: 04 July, 2011
Leading Norwegian cod farmers Atlantic Cod Farms (ACF) and Codfarmers (COD) have entered into a merger. ACF CEO Ivar Kvangardnes believes this is an exciting time for the industry.
ACF has, in the previous months, made significant structural changes, including financial and organisational changes. The timing is right for a structural solution with Codfarmers that realises significant synergies to the benefit of the shareholders and the employees,” said Kvangardsnes.
Shareholders of Atlantic Cod Farms will receive shares in Codfarmers in consideration for their shares, such that the transaction will function as a stock exchange.
The COD shareholders and the ACF shareholders will own 51.1 per cent and 48.9 per cent, respectively, of the combined company.
Kvangardnes noted that demand and prices were high and thought the market would experience a permanent shift in prices for cod.
Even in the period in which catches of wild cod are the greatest, the demand for fresh cod and prices were high then. We had sky-high prices for future contracts, far above any level we have seen earlier, he recalled.
He believes the union will strongly help advance the development of farming as the companies combine their knowledge.
“Now we gather the best expertise from the two largest Norwegian fish farmers under one roof. When we gather the best experts, we also get the best conditions to succeed with cod,” opined Kvangardnes
The parties expect the transaction to be completed this August and the rights issue finalised in September.