Thai Union Frozen Products (TUF) is considering divesting its stake in American tuna brand Chicken of the Sea, a move that could clear the way for its planned $1.5bn acquisition of Bumble Bee Foods.
TUF CEO Thiraphong Chansiri was quoted by Reuters as saying: "We are considering every option. We have not made decision about the divestment and it should become clear within the next four to six weeks."
The plans for the divestment come in response to an antitrust investigation by the US Department of Justice into TUF's US subsidiary Tri-Union Seafoods, which operates Chicken of the Sea.
Though the probe is not focused on the planned Bumble Bee acquisition, it may impact the deal.
The uncertainty in the deal started after Thai Union suspended a planned share offering as a result of US authorities' price-fixing probe of the packaged seafood sector, as reported in Undercurrentnews.
Reuters reported citing the company that Tri-Union has been issued a subpoena by the US authorities to provide relevant information for the investigation of the packaged seafood industry in the country.
Additionally, US-based food distributor Olean Wholesale Grocery Cooperative has filed a lawsuit against Bumble Bee, Starkist Company and Chicken of the Sea for allegedly running cartels.
Despite of all these barriers, if the deal between TUF and Bumble Bee Foods goes ahead, the companies will focus on enhancing operating efficiencies for material sourcing and production, innovation, and new product development, primarily in North American markets.
