Food and agri-business group Origin Enterprises and Norwegian group Austevoll Seafoods say they are combining their respective Irish, UK, Norwegian fishmeal and fish oil operations.
Origin Enterprises, the company spun off from food group IAWS, is a leading producer of fishmeal and fish oil in Ireland and the UK through its United Fish Industries division.
Austevoll's subsidiary Welcon is Europe's leading manufacturer of fishmeal and fish oil with operations in Norway. Austevoll, through other subsidiaries, also has operations in Chile and Peru.
Origin has transferred its interest in UFI to Welcon along with a cash contribution of €16m in return for a 50% shareholding in the combined business.
The turnover of the enlarged group is expected to be about €175m.
Shares in the group jumped by 14 cent to close at €1.84 in Dublin.
