Sheffield, England-based biotechnology and food chain sustainability firm Benchmark will dissolve its joint venture with Chilean salmon producer AquaChile and pursue an independent strategy for the project in Chile.
Discussions with AquaChile regarding the dissolution of the joint venture are underway, Benchmark said in a statement. Benchmark presented the change in its JV plans with the Chilean salmon farmer as an “opportunity to take control of a salmon breeding operation in Chile” and pursue an independent strategy.
The agreement to form the joint venture was announced in June 2018 and took force in October of the same year. At the time, the firm saw it as a plan to enter the Chilean market as a local player through the creation of Benchmark Genetics Chile.
The statement said that the opportunity to take over the JV emerged due to management change at the Chilean salmon farmer. In January 2019, Chilean protein giant Agrosuper completed the acquisition of AquaChile, a transaction estimated at USD 850 million (EUR 748 million) in value.
Discussions underway contemplate a return of Benchmark’s original equity investment in the JV, together with intellectual property rights, the genetic stock and biomass, and resources to operate the 50-million egg facility.
Benchmark said it expects to reinvest these returned funds in the wholly-owned business in the coming years to enhance biosecurity and achieve full-scale production at the land-based facility.
“We are pleased to have the opportunity to fully own the world-class salmon breeding facility currently owned by the JV and to reinvest the funds to move towards full-scale production and commercialization,” Benchmark CEO Malcolm Pye said. “We look forward to strengthening both our relationships and cooperation with existing and new partners in Chile.”
