Canned tune from Bumble Bee. (Photo Credit: Bumble Bee)

Thai Union terminates deal to purchase Bumble Bee

THAILAND
Friday, December 04, 2015, 22:40 (GMT + 9)

Thai Union decided to abandon its plan to acquire its US rival Bumble Bee Seafoods after US Government authorities determined that the deal would harm competition in the seafood market.

At the end of last year, Thai Union had announced its intentions to purchase California-based Bumble Bee with an estimated deal value of USD 1.51 billion.

The Thai Group’s representatives explained that together with the seller Lion Capital, they had advocated the merits of the deal to the US Department of Justice over the course of the last twelve months and that both of them finally agreed that the clearance would be unlikely under the time stipulated in the share purchase agreement, Reuters reported.

The Department of Justice insists that the acquisition also would have meant the combination of the first- and second-largest US sellers of some other canned seafood.

This would have been the firm’s third acquisition this year, following the acquisitions of Norwegian seafood firm King Oscar and the French smoked salmon supplier MerAlliance.

The Group's Chief Executive Thiraphong Chansiri pointed out they would focus on existing business and remain committed to the North American seafood market. Currently, its Chicken of the Sea tuna business is the third largest in the US.

Chansiri also highlighted that despite the termination of Bumble Bee’s deal, the Group still confirms its goal to achieve the annual revenue of USD 8 billion by 2020.

“Thai Union would buy other overseas firms to make sure it reaches that target,” the CEO remarked.

Thai Union had been the focus of international criticism lately. The Group was accused by Greenpeace of allegedly using forced labour on their fishing boats. One of the Group’s buyers, Nestlé, carried out an investigation and found that there were labour abuses aboard boats and at production facilities in its supply chain and implemented safeguards to stop such abuses.

In its defense, Thai Union explained that an independent auditor does annual surveys of its supply chain and it continues to enforce a strict code of conduct with regards to ethical labour practice and ensures all suppliers fully understand their code of conduct.

Related articles:

- Nestle admits slave labour in its Thai supply chain
- Greenpeace denounces unsolved labour issues in Thai tuna sector
- Thai Union suspends purchases from over 1,200 vessels
- Thai Union joins efforts with organisation for migrant workers' rights
- Greenpeace urges Thai Union to stop alleged labour abuse
- Thai Union launches new ethics and labour code of conduct

 
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