Last April, both parties signed a memorandum of understanding in relation to BioMar’s intention to become part owner and operational lead in Viet-UC's feed factory. That non-legally binding agreement enabled the two companies to explore such possibilities further, in an exclusive arrangement, before official confirmation of a deal, which was announced this week.
“The due diligence was mainly a risk analysis task to assess the condition of the assets and to ensure the accounts matched our expectations. We are happy with the outcome and, furthermore, this process assured us that we have the right cultural fit to succeed in Vietnam through a strong partnership,” Michael Gammelgaard, global business development director, BioMar Group, told us.
BioMar said it is now ready to pursue a position within high-end shrimp feed in Vietnam, creating synergy with the group’s existing shrimp businesses in LATAM.
Viet-Uc is of the leading seafood groups in Vietnam; as well as feed, it is active in shrimp hatcheries, fish hatcheries and shrimp farming. The ambition of both companies is to grow the Vietnamese market for high-end feed products focusing on sustainability, traceability, quality, and performance.
The acquisition is subject to customary approvals by the authorities.
Vietnamese shrimp sector
“With this partnership, we open a door into the Vietnamese market, one of the world’s leading shrimp producing countries with a production close to 500,000 tons. Considering the performance and agility of the Vietnamese shrimp industry during the last decade and not at least during this last year of pandemic, I am sure the market holds great potential for growth,” said Carlos Diaz, CEO, BioMar Group.
Looking at forecasts and increasing consumer focus on healthy and sustainable seafood in Vietnam, BioMar expects there will be an increasing market share for high-end feed there, ensuring customers can capture value by delivering certified and tailored products towards global retail channels.
The Danish group has been engaged in the development of feed and technical services for shrimp since 2021, utilizing the capabilities of global R&D in combination with trial facilities around the world, most recently through the advanced internal feed trial unit in Ecuador dedicated to shrimp and local trials in Vietnam. “Moving into Asia will strengthen the position of BioMar in the global shrimp industry and make it possible to share know how and best practice across the continents.”