Grain Leader Cargill Buys Salmon Market Leader EWOS for $1.5B

Grain leader Cargill confirms on Monday that it has agreed to buy EWOS, a global salmon market leader. The agreement to purchase EWOS was set for $1.5 billion. The deal is set to be finalized before the year ends pending regulatory approval.

The agreement makes it the first time for the agricultural company to be involved in the salmon market as it adds EWOS into its aquaculture venture. Cargill is also operating with Naturisa, a shrimp feed facility based in Ecuador. Other aquaculture ventures of Cargill included only warm water fish.

The transaction between Cargill and EWOS according to chief executive and president David W. MacLennan of Cargill, is part of their endeavor to strengthen their commitment to help enrich the aquaculture industry.

This is the second biggest deal that Cargill has acquired ever since their purchase of the Provimi, a Netherlands-based company that specializes in animal feed production. The Provimi was bought for $2.2 billion.

At the present, Cargill already owns different fish facilities in various locations in the world including India, Southeast Asia, Mexico, China and the US.

With the closure of the deal with EWOS, Cargill is also set to acquire 2 research and development centers in Chile and Norway as well as manufacturing facilities in Canada, Chile, Vietnam, Scotland and 3 in Norway.

EWOS is founded in Sweden in 1931 and based in Norway. It is considered as one of the world's largest producer of salmon feed and is estimated to produce more than 1 million metric tons of fish feed per year. The company is home to more than a thousand employees and has posted operating revenue of $1.4 billion in the previous year.

An article surmises that the deal with Cargill and EWOS is an answer for the growing demand for salmon all over the world. At present, the production of fish has exceeded production of beef and many see this as the result of most people's desire to practice healthier lifestyles.