Peru Fishery Consolidation: Minnows Beware

Sep 1, 2010

Peru’s fisheries are again poised to consolidate. Though the pre-crisis M&A pace may not be matched, opportunity for fundraising is expected.


by Ben Miller

Three years ago, Peru’s fishmeal and fish oil exporters stood firmly in the sights of investment bankers looking at a fragmented array of players and whiffing M&A potential. The subsequent period of heavy consolidation was halted by the global credit crisis.

 
The slump did not change the fact that China – a buyer of 50% to 60% of the industry’s exports – is growing, and that about 40% of the business is still in the hands of small players.

"In the medium term, there is a need for further consolidation," says Eduardo Castro Mendivil, CFO of Copeinca, Peru’s second-largest fishing company. "Prices are a bit high for us now, but maybe not for others."

Indeed, price is just one of the things that has changed versus the last round of fusions. The market landscape is different due to regulatory changes...

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