Mowi has made its first foray into Icelandic salmon farming by buying a majority stake in Arctic Fish

Mowi, the world's largest salmon producer, yesterday announced a deal to buy 51.28 per cent of Arctic Fish, an Icelandic salmon company, for NOk 1.88bn ($181m).

Arctic Fish was previously owned by the Royal Norwegian Salmon Company (NRS), a subsidiary of the Norwegian Maritime Group (NTS). This year, Norwegian salmon giant SalMar decided to buy NTS, creating the world's second-largest salmon company. But NRS was required to divest its entire stake in Arctic Fish in order to clear the European Commission's antitrust review.

So it decided to buy a majority stake in Arctic Fish, a deal that marks its first foray into the Icelandic farming business.

The Arctic Fish farm, located in the fjords on Iceland's west coast, is expected to produce 10,600 tonnes this year. Arctic Fish holds a total of 10 Icelandic licences with a maximum allowable biomass (MAB) of 27,100 tonnes and a further 4,800 tonnes awaiting approval.

Ivan Vindheim, CEO of Merway, said: "In the next few years, Iceland's salmon farming industry will enter a period of rapid growth and we are delighted to have the opportunity to participate. Icelandic waters provide excellent growing and living conditions for salmon."

Over the years, Meiwei has kept a close eye on the Icelandic salmon farming industry, "and has been very impressed by the staff, management and shareholders of Arctic Fish, who have witnessed the important history of Arctic Fish's development."

"Arctic Fish is geographically and organisational in a way that is incompatible with our current operational strategy.