SET-listed Thai Union Group (TU) announced on Friday that it has reached agreement with Lion Capital to mutually terminate the acquisition of US seafood giant Bumble Bee Foods LLC with immediate effect.
The company announced the intended acquisition of Bumble Bee Foods on Dec 19, 2014. Over the last 12 months, both TU and Lion Capital have advocated vigorously the merits of the deal to the US Justice Department, according to TU's statement.
TU said, however, in light of the antitrust investigation initiated by the US Justice Department on the packaged seafood industry in the US, the two partners have concluded that clearance is unlikely under the time stipulated in the share purchase agreement.
The deal to buy California-based Bumble Bee was estimated to be worth US$1.51 billion. TU earlier considered selling its Chicken of the Sea tuna business in the US if it would help the company seal the Bumble Bee Seafoods deal.
“We have put in a lot of effort to get this deal approved. However, we also recognise that clearance is now unlikely due to a higher level of complexity in the process,” said Thiraphong Chansiri, president and CEO of Thai Union.
He said the company had decided to focus instead on existing business. Thai Union remained committed to the North American seafood market.
Late last month Mr Thiraphong said the company would push ahead with ints goal to have global revenue of $8 billion by 2020 even if it failed to acquire Bumble Bee.