Mitsubishi Corporation has proposed to acquire Norwegian salmon processor Cermaq, in a deal worth NOK8.88bn ($1.4bn).
The company has launched a voluntary cash tender offer for the proposed acquisition.
The move is in line with Mitsubishi's strategy to bolster its presence in the food business. The company already has a strong position within the seafood business in Japan.
Cermaq is involved in the breeding and on-growing, harvesting, processing, sale, and distribution of salmonid species worldwide. The company provides Atlantic salmon, trout, and coho.
With operations in Chile, Canada and Norway, Cermaq produces about 170, 000 metric tons of salmon annually.
Cermaq Board of Directors chair Rebekka Glasser Herlofsen said: "Together Cermaq and Mitsubishi Corporation will become the world's second largest salmon farming company, set for further sustainable growth.
"Mitsubishi Corporation is an internationally leading and highly respected diversified business group with a strong financial basis, offering considerable synergies within the seafood sector, and sharing many of the important values of Cermaq, including corporate social responsibility, commitment to sustainability and a long term perspective."
