Scottish salmon farmer Marine Harvest has been fined nearly £16million by the European Commission (EC) for an alleged breach of merger rules.
The Norwegian aquaculture giant said yesterday it would now carefully consider its options but it was “more likely than not” that it would challenge the decision in court.
Marine Harvest had previously been warned it could face a fine of up to 10% of its turnover for having failed to notify the EC of its intention to acquire Morpol before the “merger” was actually implemented.
The company launched its takeover of smaller rival Morpol, which operated in Scotland as Meridian Salmon Group, in late 2012.
Marine Harvest paid about £56.5million cash in a deal worth a total of £103million, including shares, for an initial 48.5% stake.
It also made a mandatory offer for the remaining shares to give it full control of Polish-owned Morpol, which was the main salmon farmer in Orkney and an important producer in Shetland.
Earlier this year, Marine Harvest agreed to sell sites in both Orkney and Shetland to Canada’s Cooke Aquaculture in a £122.5million deal aimed at appeasing competition concerns which arose from the Morpol takeover.
Marine Harvest employs more than 350 people at sites along the west coast and in the Western Isles, as well as in head offices in Edinburgh.
Responding to the fine yesterday, the firm said: “Marine Harvest remains of the opinion that it acted in accordance with the requirements of the (EU legislation) exception applying to public takeovers in its acquisition of Morpol, and thus disagrees with the commission on the applicability of a fine.
“The take-over of Morpol was structured as an acquisition of the initial shareholding followed by an immediate mandatory offer.
“Marine Harvest made it clear to both the market and Morpol that no control would be taken before the acquisition had been cleared by the EU.
“The Company notified the commission immediately following the acquisition and loyally adhered to the principle of not exercising its shareholders rights in Morpol until the commission had cleared the transaction.
“Marine Harvest also notes that the size of the fine appears to deviate significantly from similar cases where fines have been applied by the commission.”