Grieg gets green light for Newfoundland buy-out
Shareholders of Norwegian salmon farmer Grieg Seafood have rubber-stamped the company’s decision to buy separate Canadian operation Grieg Newfoundland (Grieg NL) in a deal that could be worth up to NOK1.55 billion (£130 million) depending on future harvest volumes.
A resolution approving the deal was passed by 22,281,686 votes to 0 at an extraordinary general meeting (EGM) at Grieg’s headquarters in Bergen, Norway.
Grieg NL has licences for 11 sea sites in Placentia Bay, and is building an on-land smolt facility at Marystown in conjunction with recirculating aquaculture facility (RAS) expert AquaMaof. Three of the licences are approved, three are expected to be approved in 2020 and the rest are in different stages of application.
45,000 tonnes
The project has a long-term annual harvest potential of 30,000 – 45,000 tonnes Atlantic salmon, which would more than double Newfoundland’s current output. Grieg NL’s acquisition will help Grieg Seafood reach its production target of 150,000 tonnes a year by 2025.
Although the companies share the Grieg name and have other commonalities, they have until now been separate entities.
The Newfoundland project was initiated by Grieg Kapital AS and Per Grieg Jr in collaboration with local partner Ocean Choice International Ltd in 2014.
