Cermaq reshapes its Canadian farming operations

The fish farming group, a wholly owned subsidiary of Japan’s Mitsubishi Corporation, said at the weekend it is implementing the amalgamation of its subsidiaries in Canada.

 

A year ago, Grieg sold its salmon farming operations in Newfoundland and British Columbia (along with those in Finnmark, Norway) to Cermaq for an estimated NOK 10.2 billion (£740m).

 

Cermaq said that CQ Canada Holding Ltd., currently a specified subsidiary of the company, will cease to qualify as a specified subsidiary.

 

It added: “Meanwhile, Cermaq British Columbia Ltd., a newly established company, will have capital exceeding one-tenth of the company’s capital and will therefore qualify as a specified subsidiary of the company.

 

“Since this transaction constitutes an organisational restructuring among the company’s consolidated subsidiaries, certain disclosure items and details have been omitted.”

 

Cermaq added that the reason for the change is to integrate multiple subsidiaries under Cermaq’s Canadian operations and consolidate their functions into a newly established company, thereby enhancing the efficient use of management resources and achieving functional integration.

 

The restructuring becomes effective from today.

 

Cermaq already has extensive salmon farming operations in Norway and Chile, as well as Canada. The purchase of Greig’s North American business now makes it one of the main foreign owned fish farmers in Canada.

 

The future of open pen fish farming in British Columbia remains uncertain. The Canadia government is pressing ahead with a ban imposed by the previous government despite widespread protests by the industry and some First Nation groups.