Sealord Group has been granted clearance by New Zealand’s Commerce Commission to take over the fishing business of Independent Fisheries.
This move comes after Sealord’s recent purchase of Sanford’s North Island inshore fishing business, indicating its strategic expansion in the seafood sector.
Sealord Group is a major seafood business in the Southern Hemisphere, jointly owned by Maori through Moana New Zealand and Japanese seafood giant Nissui.
Under the acquisition, Sealord will acquire all Independent Fisheries’ shares, including its annual catch entitlement, and other assets such as quota, premises, plant, equipment, and related entities.
Like Sealord, Independent Fisheries is also a major deepwater fishing company in New Zealand, with more than 500 staff and vessel crew. Both entities primarily harvest, process, and supply various finfish species, with most of their catch being processed and exported.
The commission said that in reaching its decision, it considered the potential impact of the proposed acquisition on the market competition for the supply of fishing quota and associated annual catch entitlement to deep water fishing companies, as well as markets for the supply of frozen fish to wholesale and retail customers in New Zealand.
Division chair Dr Derek Johnston said the commission was satisfied that the acquisition is unlikely to lessen competition in any New Zealand market substantially.
“Our investigation found that Sealord and Independent Fisheries do not compete particularly closely in any relevant markets and, post-acquisition, Sealord will continue to be constrained by several other established competitors,” explained Johnston.
“We consider that these factors will mean the merged entity is unlikely to be able to increase prices significantly or to affect how the different deepwater fishing companies compete with one another in any of the relevant markets.”
