Please use this identifier to cite or link to this item: http://hdl.handle.net/1946/12719
In recent years there has been a great consolidation of international food processors in the salmon farming industry in form of mergers and acquisitions (M&A). This development has not only been taking place between neighboring countries, but corporations have been investing in other continents. Marine Harvest Group (MHG) is the largest processor of farmed salmon in the world and has been the center of this development.
The practical elements of the research are to support Marel, a major player in the making and exportation of food processing equipment, in gaining further information about the current situation as well as future plans of MHG. The researcher seeks to find which driving forces of M&A have affected MHG and which ones are of the most significance in shaping the company’s strategy.
The case study consists of both qualitative and quantitative research methods. First hand data was collected via telephone interviews with key members at the top level of the company’s hierarchy. The interviewers address the M&A topic as well as the Group’s decisions and strategy towards salmon processing solutions.
The study results that the Group is most active in vertical mergers. The most influential M&A driving forces are: (1) economics of scale (efficiency gains), (2) regulatory framework, (3) sustainability, (4) production, (5) productivity, and (6) market size. Decisions on investment choices and amounts are becoming more centralized at a business unit level. The conclusions highlight a list of factors that the interviewees gather as important elements of salmon processing solutions.
Key words: Mergers & acquisitions, M&A driving forces, Salmon farming, Marine Harvest Group, Economies of scale, Sustainable Business