Salmon farming centre. (Photo: Marine Harvest)

Norwegian salmon firms focus on investments in Chile

CHILE
Wednesday, September 17, 2014, 03:50 (GMT + 9)

Several Chilean salmon companies are being focused by Norwegian firms, world leaders in salmon production, who consider the present moment offers a good opportunity to consolidate their operations in Chile.

In fact, Marine Harvest announced this week the acquisition of the assets of Acuinova Chile SA for USD 120 million. And a week before, the Norwegian salmon firm Ewos completed the purchase of Nova Austral for USD 183 million.

According to a local salmon industry analyst, "since 2013 the purchase of firms in the sector has been expected, mainly by foreign companies," the newspaper La Tercera informed.

From the Association of Salmon Industry AG (SalmonChile), it is believed that the current firm sales process shows that the industry is attractive to invest. 

"The fact that there are purchases for the prices we are seeing is always positive because it means that this is an industry with a future and where there is interest in it," said Felipe Sandoval, SalmonChile president.

The salmon farming industry has managed to have 20 producers in the country but it is estimated that this number could be halved as a result of a merger and acquisition process.

Although, according to what was published in La Tercera, the Nissui Japanese group, which operates in Chile Salmones Antarctica, expressed concern about the concentration that is given in terms of concessions, Sandoval ensured that "in this sector there are more companies than in other areas." And while it was acknowledged that there are fewer companies than before the crisis that in 2007 resulted in the onset of the infectious salmon anemia (ISA) virus, he pointed out that "the transactions between these are natural, and shows that there is a certain vitality."

In addition, he stressed that "the improvement of the health issue is clearly reflected in cost reduction."

Sandoval also noted that the purchase of Nova Austral, a subsidiary of Pesca Chile, by the Norwegian salmon firm Ewos, signals the entry of a new player in the Chilean industry.

As it was reported by Marine Harvest, the assets of Acuinova that it has just bought have the capacity to produce around 40,000 tonnes of gutted salmon, and the company expects that by 2015 the biomass considered in the agreement will generate a harvest of about 15,000 tonnes.

Among the assets, the transaction includes two fish farms, 36 production concessions in sea and a primary and secondary process plant, all located in the Aysen Region.

The Norwegian firm remarks that the assets purchased from Acuinova will offer the company "the necessary comfort for the administration and infrastructure on land to start a sustainable production in the region."

Related articles:

- Marine Harvest buys Acuinova assets
- Ewos affiliate agrees to buy Nova Austral

By Analia Murias
[email protected]
www.seafood.media

 MOWI Chile S.A. (previamente Marine Harvest Chile)

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