Leading Norwegian cod farmers Atlantic Cod Farms (ACF) and Codfarmers have entered into a merger. ACF shareholders will receive shares in Codfarmers in consideration for their shares. Codfarmers shareholders and ACF shareholders will own 51.1 percent and 48.9 percent, respectively, of the combined company. The parties expect the merger to be completed this August and that the rights issue will be finalised in September.
ACF CEO Ivar Kvangardnes believes the merger will help advance the development of farming as the companies combine their knowhow. "Now we gather the best expertise from the two largest Norwegian fish farmers under one roof," he said. The combined company will also enjoy increased capacity to restock and sustain fry, fingerlings and food fish production while lowering the biological risk, reports TDN Finans. Capacity will stand at 20,000 tonnes of cod per year.
According to seafood analyst Klaus Hatlebrekke, the merger will be strategically advantageous for both companies by allowing cost savings while improving their market position. Hatlebrekke told Hegnar Online that, while the industry continues to face obstacles in terms of cost, cod might grow as successful as salmon in the market. Prices have shown improvement in 2011 and processed cod products such as 'Power' are working out well, he said, adding, "The new generations of cod fall in terms of cost since they grow faster than before and the quality is better."
