Mowi receives EU approval for Nova Sea takeover

Mowi told the Oslo Stock Exchange that it has been informed that the EU competition authorities have approved the transaction.

The decision will be seen as overcoming a major hurdle for Mowi, which says that now only approval by the Norwegian competition authority, which is still pending, is needed before the transaction can be closed.

Mowi announced in January that it had agreed to acquire a 95% ownership in the independent aquaculture business, in which it already held a 45% stake for a number of years.

Nova Sea is one of Norway’s leading independent salmon farmers in Northern Norway and Mowi’s acquisition is one of the country’s largest salmon aquaculture deals for some time.

The Nova Sea operation covers the entire value chain from broodstock and smolt production to harvesting and sales. The company expects to harvest 52,000 tonnes of salmon this year.

Although Norway is not a member of the EU, the bloc is one of the country’s largest markets for seafood – and salmon in particular. And as the world’s largest Atlantic salmon farmer, Mowi is a powerful force in the industry.

Mowi is paying more than £500 million (NOK 7.4 billion) in shares and cash for Nova Sea.

Ownership will boost its output by more than 52,000 tons a year.

Mowi CEO Ivan Vindheim said, in January, that the deal will create more jobs and create more activity along the Norwegian coast.

Mowi has held a sizeable stake in Nova Sea for at least 30 years, so it knows the company well.