Scottish Sea Farms buys Grieg Seafood's Scottish operations

Grieg Seafood runs salmon farms in Shetland and Skye

Salmon producer Scottish Sea Farms (SSF) has bought Norwegian rival Grieg Seafood's entire Scottish operations in a deal worth £164m.

The acquisition will see SSF take over 21 sites across Shetland and Skye.

They include marine farms, freshwater hatchery and a processing facility, which harvested about 16,000 tonnes of Atlantic salmon last year.

SSF said the deal was a "strategic move", in part to meet rising demand for premium quality Scottish salmon.

• Shetland fish farming operation to be sold

• Grieg Seafood firm assessing Skye fish farm operations

Scottish Sea Farms - which is co-owned by Norwegian firms Leroy Seafood Group and SalMar - runs operations across mainland Scotland, Shetland and Orkney.

It produced about 24,000 tonnes of Atlantic salmon in 2020.

Grieg Seafood, which employs more than 200 people, announced last year that it planned to sell its Shetland operations after its markets were hit by the Covid-19 pandemic.

The company had previously stated it would cease operations at its five farms on Skye after last year's harvest was completed.

Grieg said at the time that its decision on the future of the Skye sites had been expedited by high fish mortality rates at three of the farms.

In a statement on Friday, SSF said Grieg's sites complemented the "geography and nature" of its own operations.

Chief executive Jim Gallagher said: "As farmers, we are constantly striving to create the best growing conditions for our salmon.

"The purchase of Grieg Seafood Hjaltland UK is a landmark step in our long-term strategy, giving us greater influence over several key biological factors including fish health, stocking regimes and sea lice management."

The deal, which is on a cash and debt-free basis, is expected to close in the fourth quarter of this year, subject to approval by competition authorities.