Marine Harvest eyes on 65,000 t of Canada growth

Aslak Berge

Possibilities amass after Northern Aquaculture acquisition.

Salmon-watching analysts at DNB Markets see the potential for 40,000 tonnes to 45,000 t in growth after Marine Harvest’s acquisition of Northern Harvest, writes TDN Finans.

Late Friday came the news that Marine Harvest had splurged and spent CAD 315 million to secure the Canadian fish farmer it had spent months bidding for.

The brokerage house has said that together with the acquisition of Grey Aqua, an earlier acquisition on Canada’s East Coast, the company now has the regional means to produce a collective 65,000 t per year. While Marine Harvest has issued guidance for a processed 369,000 t of salmon globally, the company doesn’t produce a single kilo of salmon in Eastern Canada.

The company has secured these growth prospects via lower input values than would have been required to establish the same platform for growth in Norway. It’s an import value that implies a rebate in relation to investors own appraisal of the company, TDN Finans reported DNB Markets as saying.

DNB Markets is maintaining its buy recommendation on Marine Harvest with a price target of NOK 160 (EUR 16.25). As the market opened on Friday, Marine Harvest shares were being traded at NOK 138.80 (EUR 13).


Related Articles